Finance

Dialog Axiata Reports Decline in Revenue and Profit for June Quarter

Dialog Axiata PLC’s performance for the quarter ending June 2024 was disappointing, with a decline in revenue and increased overhead costs impacting the group’s operating results. The company reported a revenue of Rs. 40.9 billion for the April–June period, marking an 11.7 percent decrease compared to the same quarter last year.

The drop in revenue is partly attributed to a significant reduction in revenues from the fixed telephony and broadband sectors, which fell by nearly a third compared to the previous year. Operating profit also suffered, decreasing by 37.9 percent to Rs. 2.36 billion due to rising administrative and distribution costs.

The company reported a net loss of Rs. 1.57 billion for the quarter, or 19 cents per share, compared to a profit of Rs. 3.1 billion, or 38 cents per share, in the same period last year. This net loss was largely driven by a Rs. 2.9 billion net finance cost, primarily due to net foreign exchange losses.

The finance costs reduced to Rs. 2.62 billion from Rs. 3.86 billion a year ago, but a net foreign exchange loss of Rs. 763.9 million reversed a previous gain of Rs. 3.4 billion due to currency fluctuations affecting foreign currency borrowings.

In other segments, the company’s mobile telephone unit, its largest by revenue, saw a 3.9 percent increase to Rs. 51.6 billion. Television operations also reported a 1.9 percent revenue increase to Rs. 6.1 billion. However, the fixed telephone and broadband unit experienced a significant 36.1 percent revenue decline, totaling Rs. 24.8 billion.