May 23, 2008 (LBO) – Sri Lankan mobile operator Dialog Telekom said its first quarter net profits fell by more than half after it cut prices owing to growing competition and rising costs took their toll. Despite Dialog TV revenues growing by 187 percent over the same 2007 quarter, it made loss of 114 million rupees.
“Pay Television penetration (estimated at one percent of television owning households) remains modest signifying substantial growth
opportunities for Dialog Television.”
In the mobile business, the prepaid segment continued to contribute an increasing proportion of subscriber growth.
“Other factors driving revenue growth included the growth in coverage and increased international traffic and associated revenues accruing from the company’s International Business Operation.”
Domestic revenues, which consist in the main of pre-paid and post-paid mobile revenues, remained the dominant constituent of company revenue and accounted for approximately 80 per cent of total revenue for the three months ended 31 March 2008.
The firm’s broadband and pay TV businesses also continued to make losses, a company statement said.
Net profit for the quarter ending March 31, 2008 p