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Dialog Axiata posts sequential increase in Q4 earnings

Dialog Axiata PLC (COL:DIAL), Sri Lankan's largest telecommunications company, reported an increase in profits in the fourth quarter.

The company operates Dialog Group, whose subsidiaries include Dialog Broadband Networks and Dialog Television.

For the quarter that ended December 31, the group's net profit was LKR1.4 billion ($11,862), up 2 percent on the prior quarter.

Dialog said financial outcomes at group level were driven by strong operational performance across the PLC and its subsidiaries.

Dialog said it recorded strong revenue growth across all segments, with group revenue of LKR11.9 billion ($100,886) for the fourth quarter, representing quarter-on-quarter growth of three percent.

Group EBITDA in the quarter was LKR4.7 billion ($39,826).

The group continued to make aggressive investments towards expanding its nationwide ICT infrastructure footprint and the application of technology across its mobile, fixed and broadband businesses during the quarter, it said.

At the PLC level, the company recorded revenues of LKR10.9billion in the quarter, growth of two percent quarter-on-quarter.

The company said its Mobile, International and Tele-Infrastructure businesses continued to leverage their position to deliver results.

Higher costs at the company level were attributed to revenue-linked costs associated with international origination, roaming, domestic interconnection charges and escalation in network operating costs in line with the aggressive expansion of the company's 2G and 3G infrastructure footprint, it said.

Notwithstanding revenue linked cost expansion, EBITDA at company level increased by six percent quarter on quarter, to reach LKR4.3billion in the fourth quarter.