|
Dialog
share price down to all time low but no buyback deal says
Dr. Hans
Sri
Lanka’s telecom giant and once most profitable corporate
Dialog Telekom’s share price yesterday slipped to its
all time low of Rs. 7.75 including an intra-day lowest of
Rs. 7.50, but the Company has ruled out a share buy back deal.
Dialog Telekom CEO Dr. Hans Wijesuriya in comments to Reuters
yesterday had said there were no plans to buy- back shares
to try to boost the price from an all-time low.
Dialog
share price has dropped 40% since Aug. 13, when the company
announced a 78% fall in quarterly profits. “Movement
of the share price is certainly a result of multiple market
dynamics and the company does not intend to influence those,”
Wijesuriya said, referring to market speculation about a share
buyback. High interest rates, high inflation and a global
credit crunch have also contributed to the share’s fall,
as well as squeezed profit margins, Wijesuriya said.
Despite a sour bottom line, Dialog remains the undisputed
leader. Last week it announced a key milestone of 5 million
plus customer base, growing 17.4 percent in January-September.
“Usage is growing, but at a rate which is a little lower
than last year. With the economic conditions, plus competition,
there is pressure on margins. I think it’s short-term.”
Sri Lanka’s annual inflation hit a 6-year high last month,
and Dialog slashed call charges twice last year and once this
year to spur usage. “We need to continue to grow in order
to support the usage need and the coverage need. There will
be a requirement for investment in coverage, in capacity as
well as in technology advancement,” Wijesuriya told Reuters.
|
