Daily News Online

DateLine Wednesday, 31 October 2007

News Bar »

    News: LTTE targets more families for conscription  ...            Political: SAARC legal framework to counter terror  ...           Business: Dialog posts Rs 7.98bn profit in first 9 months  ...            Sports: Shock! Sangakkara out of First Test  ...

Home

 | SHARE MARKET  | EXCHANGE RATE  | TRADING  | PICTURE GALLERY  | ARCHIVES | 

dailynews
 ONLINE


OTHER PUBLICATIONS


OTHER LINKS

Marriage Proposals
Classified
Government Gazette

Dialog posts Rs 7.98bn profit in first 9 months

Dialog Telekom PLC - recorded a profit after tax of Rs. 7.98 bn up seven per cent relative to the nine months ended September 30, 2006.

Company earnings comprise in the main of contributions from mobile business supplemented by earnings accruing from the company's International Business Operations and Internet Service Provider Operations.

Dialog Telekom PLC (DT) continued to deliver robust growth recording a 40 per cent increase in mobile subscribers YoY and revenue, EBIDTA and PAT growth of 24 per cent, 15 per cent and 7 per cent respectively.

The performance at DT was delivered notwithstanding revenue mitigating externalities mainly the disruption to services in the Northern and Eastern Province of Sri Lanka during the first half of 2007.

In line with the strategic intent of securing future growth and earnings opportunities arising from convergent technology related business lines including but not limited to Fixed Line Telephony, Broadband and Digital Television media, Dialog Telekom has over the past year seeded nascent new business through acquired subsidiaries Dialog Broadband Networks (DBN) and Dialog Television (DTV) and its subsidiaries.

Group results of Dialog Telekom PLC, post consolidation with subsidiary performance, recorded a profit after tax (PAT) of Rs. 7.30 bn. for the nine months ended September 30, 2007, representing a drop by 3 per cent relative to the nine months ended September 30, 2006, due mainly to a negative contribution of Rs. 542.56 mn from the recently operationalised subsidiary Dialog Television (Pvt) Ltd (DTV) which had a dilutive effect on the profit growth of 7 per cent delivered by the core operations of DT. Dialog Television is currently in an aggressive subscriber acquisition phase on the backdrop of the rapid expansion of channel (content) portfolios.

The month of September witnessed the soft launch of the SET Plans scheme. The SET plans scheme is designed to provide subscribers with the flexibility to customise their Channel bouquet to suit their personal preference.

The Direct to home (DTH) Pay TV business operated by DTV is characterised by a substantial fixed cost base (comprising of satellite capacity costs, minimum payments to content providers and other operation specific fixed costs).

Contribution from operations is determined in the main by the extent to which the fixed costs could be recovered against revenue generated by the growing subscriber base. The company is moving aggressively towards achieving a critical mass of subscribers required to fully amortise fixed costs.

The negative contribution from Dialog Broadband Networks (DBN) accrues largely from costs arising from capacity building ahead of demand and revenue realisation from recently established CDMA and WiMaX Network infrastructures.

The company is moving rapidly towards a reversal of the latter position with the commercial launch of CDMA services in July 2007 and the full commercialisation of WiMaX based Wireless Broadband services in the last quarter.

The company added over 1.1 mn net subscribers over the past 12 months, and accordingly the Company's cellular subscriber base increased by 40 per cent to reach 3.96 mn subscribers by September 30, 2007.

The prepaid segment increased by 46 per cent from 2.36 mn to 3.44 mn. In parallel, the postpaid subscriber base witnessed a growth of 10 per cent from 0.48 mn to 0.52 mn. The subscriber mix for the nine months ended 30 September 2006 and 2007 is presented in the table.

Value added services (VAS) revenues accounted for close to 10 per cent of total revenues.

Peer-to-Peer SMS revenue continued to represent the largest component of non-voice revenue accounting for 6 per cent of total revenue.

Revenue from international termination increased from Rs. 1,649 mn to Rs. 2,280 mn representing an increase of 38 per cent.

Subscriber base		Units	Sep-06	Mix	Sep-07	Mix	Growth%

Postpaid		000	475	17	523	13	10
Prepaid			000	2,359	83	3,441	87	46
Total active 
subscriber base		000	2,835	100	3,963	100	40

EMAIL |   PRINTABLE VIEW | FEEDBACK

Gamin Gamata - Presidential Community & Welfare Service
www.ceylincocondominiums.com
www.cf.lk/hedgescourt
www.buyabans.com
Ceylinco Banyan Villas
www.lankafood.com
www.vocaltone.com/promo/Call_to_sri_lanka.html
www.topjobs.lk
www.srilankans.com
www.army.lk
www.news.lk
www.defence.lk
www.helpheroes.lk/
www.peaceinsrilanka.org

| News | Editorial | Business | Features | Political | Security | Sport | World | Letters | Obituaries |

Produced by Lake House Copyright © 2006 The Associated Newspapers of Ceylon Ltd.

Comments and suggestions to : Web Editor