Dialog net profit declined 14-pct in Q3 2019 with non-cash translational forex losses

Nov 07, 2019 (LBO) – Profits at Sri Lanka’s Dialog Axiata group, which has interests in Mobile, Fixed Line, and Digital Pay TV, declined 14 percent to 1.5 billion rupees from a year earlier in the September quarter, interim accounts showed.

The company said the decline in Group Net Profit After Tax is mainly due to non-cash translational forex losses resulting from 3 percent depreciation of the Sri Lankan Rupee against the US Dollar for the quarter.

“Normalised for the said non-cash translational forex losses NPAT was up 19% QoQ albeit declining 29% YoY,” the company said.

“Dialog Group continued to be a significant contributor to state revenues, remitting a total of Rs25.5Bn to the Government during the nine months ended 30th September 2019.”

The group reported earnings of 18 cents per share for the quarter compared to 21 cents per share a year ago.

Group Revenue remained flat on a Quarter-on-Quarter basis to reach 29.1 billion for Q3 2019 mainly due to intense competition and gradual recovery in core revenues following the Easter Sunday incident.

Group EBITDA grew 8 percent QoQ to reach 11.9 billion for Q3 2019 driven by continued focus in cost efficiencies. On a YoY basis Revenue and EBITDA grew 4 percent and 7 percent respectively.

The Group continued its growth momentum across the business to record consolidated revenue of 87.2 billion for the nine months ended 30 September 2019, demonstrating growth of 8 percent Year-to-Date.