Dialog Axiata revenue grows 19% in 9M16
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Sri Lanka’s Dialog Axiata has reported a 19% increase in revenue for the first nine months of the year to 64 billion rupees ($430.9 million) as a result of a temporary suspension of value-added tax (VAT) and strong growth momentum across the operator’s business.
Net profit for the period grew 71% to 7.8 billion rupees as a result of improving profit margins and significantly lower forex losses.
Dialog Axiata increased its mobile subscriber base by 10% year-on-year to 11.3 million, mostly from prepaid services. The company also recorded 43,000 net additions to its subscription TV service.
Broadband revenue for the nine-month period grew 27% to 6.76 billion rupees, but the broadband segment recorded a net loss of 62 million rupees due to aggressive fixed LTE and fiber expansion.
Total group capex for the nine months reached 12.7 billion rupees, with the high-speed broadband investments dominating spending.
Blended ARPU grew 3.8% during the third quarter to 406 rupees, while average minutes of use edged up by 1 minute to 133.
Questions & Answers
Q.What factors contributed to Dialog Axiata's increased revenue during the first nine months of the year?
What factors contributed to Dialog Axiata's increased revenue during the first nine months of the year?
Revenue grew by 19% to 64 billion rupees due to a temporary suspension of value-added tax and strong growth momentum across the operator’s business segments.
Q.How did Dialog Axiata's net profit perform for the nine-month period?
How did Dialog Axiata's net profit perform for the nine-month period?
Net profit increased by 71% to 7.8 billion rupees. This growth was driven by improving profit margins and significantly lower foreign exchange losses.
Q.What was the growth in Dialog Axiata's mobile subscriber base?
What was the growth in Dialog Axiata's mobile subscriber base?
The company's mobile subscriber base increased by 10% year-on-year, reaching 11.3 million. Most of these new subscribers came from prepaid services.
Q.Why did the broadband segment incur a net loss despite revenue growth?
Why did the broadband segment incur a net loss despite revenue growth?
Broadband revenue grew by 27% to 6.76 billion rupees, but the segment recorded a 62 million rupee net loss. This was due to aggressive fixed LTE and fibre expansion.
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