A significant reduction in group finance cost pushed Dialog Axiata PLC’s (Dialog) net profit up by 69 percent during the quarter ended June 30,2014 (2Q14) to Rs. 1.60 billion from a year ago, interim results showed.

The earnings per share for the quarter edged up to 207 cents from 119 cents.

Finance cost which was as high as Rs.915 million a year ago declined to Rs.121.5 million supported by the decline in interest rates.

Borrowings remained virtually unchanged from December 31, 2013.

The top-line grew 6.5 percent on-year to Rs.16.65 billion while the direct costs remained virtually flat at Rs. 9.37 billion.

The gross profit for the quarter was Rs.7.28 billion.

Distribution costs rose by 30.6 percent on-year to Rs.2.59 billion while the administrative costs increased by 17.3 percent on- year to Rs.2.58 billion.

Dialog’s associate company losses increased to Rs.63.7 million from Rs.7.5 million a year ago. As of December 31, 2012 Dialog had 26 percent stake each in Firstsource-Dialog Solutions (Private) Limited and Digital Commerce Lanka (Private) Limited. In the same year, Dialog entered the burgeoning e-commerce sphere with its acquisition of the home grown online retailerAnythink.lk for Rs. 207 million.

Meanwhile Dialog’s half year results showed the net profit increasing by 12.2 percent to Rs.2.85 billion from a year ago with an earnings per share of 366 cents.

Despite attempts to decrease the over reliance on the mobile segment, mobile revenue still constitutes 85 percent of total revenues, 6-months results showed.

The segment earned a revenue of Rs.28.5 billion during the first half with a profit of just Rs.4.0 billion, down from Rs. 4.2 billion a year ago.

Fixed telephony and broadband operation generated a revenue of Rs.2.56 billion but the loss expanded to Rs. 632.4 million from Rs.58.5 million a year ago.

Television operation earned a revenue of Rs.2.2 billion, increasing from Rs.1.7 billion. Dialog TV increased its profits to Rs.244.5 million from Rs. 32.5 million a year ago. Malaysia’s Axiata Investments (Labuan) Limited holds 83.32 percent stake of the company while the state -managed private sector pension fund, EPF coming in second holds 3.38 percent.