Furthermore for the last financial year the company recorded a net profit of Rs 5 billion compared to a loss for the same period last financial year of Rs. 12 billion. The major contributing factor for the impressive results has been the reduction in administrative costs by as much as Rs 11 billion rupees from the financial year 2009.
The company's subsidiaries such Dialog TV and Fixed Line operations continue to make losses. However these subsidiaries have reduced their losses by big margins compared to 2009.
Dialog TV recorded a loss of Rs.144 million for the year ending 31st December 2010 from a staggering loss of Rs 699 million for the same period last year.
The company also repaid a USD 10 million loan obtained from its parent company, Axiata Investments in December 2010.
Furthermore a new company, wholly owned subsidiary of Dialog Axiata PLC, was incorporated in January 2011 under the name of Dialog Business Services (Private) Limited (DBS) for the purpose of carrying out IT enabled services. Currently, DBS is non-operational and yet to start its commercial operation.
The Board of Directors of Dialog Axiata had decided on 10th February 2011, to propose for a cash dividend of Rs.0.20 to ordinary shareholders amounting to Rs. 1.6 Bn of consolidated group profits after the preference dividend for the financial year ended 31 December 2010. The said dividend would be exempt from tax in the hands of the shareholders.
The dividend proposed is subject to the approval of the shareholders at the Annual General Meeting (AGM) of the Company.
Dialog Axiata has the country's largest mobile network with over six million subscribers. Dialog holds the distinction of being the first company in Sri Lanka to achieve a market capitalization of USD 1 billion, which in 2009 stood at Rs 59 billion representing 5.4% of the market capitalization on the Colombo Stock Exchange.
Courtesy - Daily Mirror