Dialog ... Aug10

Dialog Axiata Plc, Sri Lanka’s biggest mobile-phone operator, turned to a second-quarter profit after winning customers in previously war-torn areas of the island nation.

Net income was 1.37 billion rupees (US$12.2 million) in the three months ended June 30, compared with a loss of 7.7 billion rupees a year earlier, the unit of Malaysia’s Axiata Group Bhd.

Revenue rose 14 percent to 10.2 billion rupees.

The end of Sri Lanka’s 26-year civil war in May 2009 has spurred economic growth and prompted carriers including Bharti Airtel Ltd and Emirates Telecommunications Corp to start services in the island’s northern and eastern regions.

Dialog outpaced rivals in expanding its network in the north and east to tap new customers. Dialog has the best reach in an area where average revenue per user is higher than in the rest of the country. Colombo-based Dialog’s subscribers grew 10 percent to 6.6 million from a year earlier.

Axiata plans to spend 3.6 billion ringgit (US$1.13 billion) on capital expenditure for 2010 to grow its international network, including $100 million for its Sri Lanka arm.