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| Sunday, 4 December 2005 |
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Dialog after tax profit up 64% to Rs. 5.15 b in nine months Dialog Telecom Ltd (DTL), Sri Lanka's leading mobile telecommunications operator has recorded an after tax profit of Rs. 5.15 billion, an increase of 64 per cent for the nine months ended September 2005. DTL has recorded a revenue of Rs, 12.81 billion representing a growth of 60 per cent compared to the corresponding period last year. Head Corporate Planning and Quality Management DTL Supun Weerasinghe said that the revenue growth has been driven by the consistent growth in the pre-paid and post-paid subscriber base. He said that the post-paid active subscriber base increased by 44 per cent from 290, 725 to 419,986 between the third quarter of 2004 and 2005. The pre-paid active subscriber base increased by 64 per cent from 916,619 to 1,505,203. Domestic revenue which consist mainly of pre-paid and post-paid revenue accounted for about 77 per cent of total revenue in 2005. Compared to 2004 the pre-paid contribution increased from 32 per cent - 36 per cent. Total direct costs amounted to Rs. 4.24 billion, a 52 per cent increase over the corresponding period last year. Significant components of direct costs are telecom equipment depreciation, Network cost, International original cost, outbound roaming cost, lease circuit rental costs and International Telecommunication levy. The total operating costs for the nine months ending September 2005 was Rs. 3.26 billion which amounts to 25 per cent of revenue. DTL has shown substantial growth in earnings before interest, tax, depreciation and Amortisation (EBITPA), amounts to Rs. 6.89 billion, a growth of 56 per cent. DTL enjoys a market share of 63 per cent. The company reached two million subscribers in November 2005 while they surpassed the one million mark in May 2004. They have been successful in doubling its subscriber base over a 16-months period. CEO Dialog Telekom Ltd Dr. Hans Wijayasuriya said that they are aiming for a customer base of three million by the end of next year. He said that they are studying the WLL business at present to introduce a solution by the end of this year or early next year. Dialog entered into a share purchase agreement (SPA) for the proposed acquisition of a 100 per cent equity interest in MTT Networks (Pvt) Ltd. MTT will provide Dialog an avenue to venture into Sri Lanka's lucrative data communications' and broadband services market going forward. MTT Network's Licence also provides Dialog with the opportunity to make direct investments into the fixed services sector, thereby expanding its presence in the country's telecommunication market and maximising its forward growth opportunities based on a wide range of services for retail and wholesale customers. SG |
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