Dialog posts Rs10.13bn profits for 2007
Dialog Telekom PLC announced an overview of its financial performance
for the Financial Year ended December 31, 2007. The company recorded a
profit after tax (PAT) of Rs. 10.13 bln up one per cent relative to the
year ended December 31, 2006, the company said yesterday.
Picture by Saliya Rupasinghe
The company's mobile business exhibited strong growth with mobile
revenues growing by 24 per cent YoY and totalling Rs. 31.13 billion.
The company's international business segment continued to exhibit
aggressive growth with Revenue Growth of 51 per cent YoY and
contributions of 12 per cent and six per cent to the company's revenue
and bottom lines respectively.
Financial results published include those for the entity Dialog
Telekom PLC and for the Dialog Telekom Group derived from a
consolidation of company performance with those of its subsidiaries
Dialog Broadband Networks (Pvt) Ltd (DBN) and Dialog Television (Pvt).
The company's revenue potential was diluted by intermittent
disruption of services in the Northern and Eastern provinces during the
first half of 2007 and a reduction in tourist arrivals which in turn
diluted International Roaming Revenues relative to their full potential.
The company also experienced operational and direct cost expansion
during the second half of 2007 largely arising from the
macro-environment as well as from the application of aggressive focus on
the roll-out of multiple new services and expansion of subscriber base.
The company invested aggressively in network infrastructure during
2007 resulting in large scale expansion of its GSM and 3G/HSPA service
coverage across the country. New coverage areas encompassed a large
number of rural towns including but not limited to Deberawewa, Koslanda,
Udadumbara and Diyagama, and spread across all nine provinces of the
The rapid and efficient deployment of investments extended strong
support to a 37 per cent growth in mobile subscribers and the extensive
expansion of 3G/HSPA services to cover most key cities and towns in Sri
Dialog's 3G/HSPA network now empowers communities in most provinces
with high speed broadband and other 3rd Generation Services delivering
manifold enhancement to the quality and capacity of telecommunications
infrastructure services available to consumers in outlying regions of
The Company also commissioned the first phase of its Fibre Optic
Transmission network in the city of Colombo.
Dialog Telekom announced an aggressive tariff reduction with a view
to expanding the market space and capturing an increasing proportion of
incremental subscribers, through the enhancement of the affordability of
its services. The tariff reduction featured discounting of key tariff
dimensions by up to 50% resulting in an overall increase in
affordability by over 35%.
In its wider scope of operations across multiple connectivity
technologies and services, the Dialog Telekom Group enhanced the
affordability of WLL Fixed Line Services through a revolutionary tariff
regime for CDMA services, reduction of entry barriers to fixed broadband
services in tandem with the launch of WiMax services and the
introduction of a entry level service plan for Digital Pay Television
services featuring an unprecedented level of affordability at Rs. 100