Dialog Axiata lose Rs8.2bn in Dec. 2022 quarter

Sri Lanka’s Dialog Axiata, which has interests in mobile, fixed access telephony and pay television said it 8 billion rupees in the December 2022 quarter amid write-offs, higher energy and finance costs.

Dialog reported losses of 1.01 rupees per share for the quarter.

In the year to December the group reported losses of 4.04 rupees per share on total losses of 33 billion rupees.

Annual forex losses were 30.2 billion rupees. Currency depreciation has also pushed up energy costs.

In the December 2022 quarter Dialog Axiata revenues rose to 50.9 billion rupees from 37.1 billion, direct costs rose to 35 billion rupees from 20.5 billion rupees and gross profits fell to 15.9 billion rupees to 16.5 billion rupees.

Administrative costs rose to 19.9 billion rupees from 5.9 billion rupees.

Dialog closed its 3G network to free spectrum for 4G operations.

“The concluded quarter has taken into account the one off/non-cash provisions amounting to Rs12.1Bn,” the company told shareholders.

“These provisions were compelled by the changing business / macroeconomic landscape and the increase in the company’s weighted average cost of capital (“WACC”) due to elevated market interest rates.”

Dialog Axiata had invested 52 billion rupees in high speed broadband and other infrastructure. The group had contributed 35.7 billion rupees in taxes to the government