Sri Lanka's top mobile operator, Dialog Telekom, posted a 78 % fall in second-quarter net profit, as higher energy costs and high inflation took a toll, a Reuters report said.
April-June group net profit slid to 537.8 million rupees ($5 million) from 2.44 billion rupees ($22.6 million) during the same period a year earlier, the report said.
Overall group turnover for the quarter rose 13% to 9.29 billion rupees ($86.33 million).
The results were hit by a rise in costs, driven mainly by inflation, up 28% year-on-year and energy-related costs, up 46% from a year ago, the company said in a statement.
Costs related to the expansion of the company's network infrastructure in the first six months rose 49% and also had an impact on the bottom line, it said.
The company reduced tariffs to encourage its customers to increase the use of mobile phones amid high inflation and declining consumer spending power.
Analysts had expected a 30-40% drop in net profit.
With more than 4.8 million subscribers, Dialog has over 50% of Sri Lanka's mobile market.