14 August 2024 12:21 am Views - 102
The leading mobile phone operator in the country reported a revenue of Rs.40.9 billion for the April – June quarter, down 11.7 percent from the same period last year.
It wasn’t entirely clear what weighed on the top-line of the group in the quarter, but the six months results showed that the fixed telephony and broadband operation had revenues lower by as much as a third from the same period in 2023.
The operating profit for the quarter was Rs. 2.36 billion, down 37.9 percent as administrative costs swelled while distribution costs also rose.
It wasn’t immediately clear if it had anything to do with the business combination between Bharti Airtel Lanka as Dialog completed its 100 percent acquisition of the latter on June 26 in an all share transaction.
Bharti received 952.7 million shares of Dialog constituting 10.355 percent stake in the latter, being its second largest shareholder behind Malaysia’s Axiata Investments (Labuan) Limited which holds 73.75 percent stake.
The company reported a loss of Rs.1.57 billion for the quarter, its second fiscal quarter or 19 cents a share compared to a profit of Rs.3.1 billion or 38 cents a share in the same period last year.
While the operating profit significantly weighed on the bottom-line, the net loss was due to the Rs.2.9 billion net finance cost which was caused predominantly from the net foreign exchange loss.
The company saw its finance cost coming down to Rs.2.62 billion in the quarter from Rs.3.86 billion a year ago, but it turned a net foreign exchange loss of Rs.763.9 million from a gain of Rs.3.4 billion a year ago.
This comes from the exchange rate fluctuations as the company has foreign currency denominated borrowings.
While the quarterly data isn’t available, the group’s mobile telephone unit, its largest by revenue, reported revenue of Rs.51.6 billion, up 3.9 percent from the same period last year.
Its television operations reported revenue of Rs.6.1 billion, up 1.9 percent.
Its fixed telephone and broadband unit reported revenues of Rs.24.8 billion, down 36.1 percent from the same period in 2023.