Dialog recorded its 2nd quarter loss

dialog_logoDialog Telekom, a unit of Malaysia’s Axiata and the island’s top celco said it lost 7.6 billion rupees in the June 2009 quarter. Group revenues fell to 8.4 billion rupees in the June quarter from a re-stated 9.1 billion rupees a year earlier. The company said the top line recovered from the first quarter. Group revenues reported in the March quarter were 8.4 billion rupees.

At company level, which represents the core mobile operations June revenues were 7.9 billion rupees, down from 8.3 billion rupees a year earlier. In March company level revenues were 7.7 billion rupees.

Chief Executive Hans Wijayasuriya said in a statement that the transition to a modernized network would reduce future operational costs. About 62 percent of the infrastructure was already NGN (next generation network), the company said.

Dialog said it had 5.99 million subscribers which was up 25 percent from a year earlier and up 2.0 percent from the first quarter. In March it reported a subscriber base of 5.85 million.

A voluntary retirement scheme for 335 executives during April and May was expected to save 543 million rupees a year in payroll and employee maintenance costs. Manpower costs had fallen 11 percent over the previous quarter.

Dialog’s Pay tv unit, which has reported losses in the past had increased its subscribers by 5.0 percent from the first quarter. In March the firm said it had 130,000 pay tv subscribers. Dialog Broadbband, a fixed and broadband unit had shown revenues of 556 million rupees.

Reason for the loss as the per income statement (comparison with previous year’s 2nd quarter)

Revenue decreased by 4.51% (company) 4.57% (group)

Direct costs increased by 20.48% (company) 21.71% (group). This is not considering as a direct reason whoever they havent gain a positive impact from revenue because of cost increasing.

Administrative costs increased by 390.81% (company) 298.95% (group). This is the major reason for the operating loss. As per company, Voluntary retirement scheme for 335 executives during April and May was expected to save 543 million rupees. But the final result is a big cost in Administrative cost. We have to reanalyse the efficiency of Cost Cutting process.




Class room financial analysis


6 thoughts on “Dialog recorded its 2nd quarter loss

  1. Globle economies crises directly attract to the every company Mission & objective.In the same time Major Competitor attack to the existing market share of the companies.to avoid from the crisis situation right product positioning should implement in strategic manner. company should not going for the major investment or advertisement. try to maintain the current customer base in very strongly.

    The market leader Air tel investment in srilanka & dialog telecoms introduce cost dedication Programme to the customers(Package benefit) . as a result there income reduce . in the same time customer shifting to air tel & other competitors. therefore future expanding revenue reduce.

    to avoid that situation Company has to introduce major cost cutting programme. because of that quality,experience Human resources leave from the company and it will give bad image to the public.now dialog have to come strongly with there business process re-engineering with right experience people in right manner.

  2. Excellent site, keep up the good work. I read a lot of blogs on a daily basis and for the most part, people lack substance but, I just wanted to make a quick comment to say I’m glad I found your blog. Thanks,

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