Dialog posts Rs 29.2 bn revenue for Q1 2020 | Daily News


Dialog posts Rs 29.2 bn revenue for Q1 2020

Direct and Indirect taxes, fees, levies to Govt, Rs 4.5 bn

Dialog Axiata PLC all key business segments, Mobile, International, Tele-infrastructure, Digital Pay Television and Fixed Line contributed to record a consolidated revenue of Rs 29.2 billion for Q1 ended 31st March 2020, demonstrating a marginal decline of 1% Quarter-on-Quarter (“QoQ”), resulting from challenges to core revenue growth, albeit growing 1% Year-on-Year (“YoY”).

derpinned by strong cost optimization initiatives, Group Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) grew 4% and 1% YoY to record at Rs12.2Bn for Q1 2020. The EBITDA margin was accordingly recorded at 41.6%, a 2.3pp QoQ improvement for Q1 2020.

The Group NPAT declined 39% QoQ and 69% YoY to reach Rs1.5Bn for Q1 2020, mainly resulting from the non-cash translational forex losses. The Rupee (“LKR”) depreciated against the Dollar (“USD”) by 4.6% in Q1 2020 versus an appreciation of 3.6% and 0.1% in Q1 2019 and Q4 2019 respectively. Normalised for the non-cash translational forex losses/gains NPAT was recorded at Rs3.1Bn, up 31% QoQ albeit declining 13% YoY due to increase in depreciation and transactional forex impact.

Dialog Group continued to be a significant contributor to state revenues, remitting a total of Rs 4.5 Bn to the Government (“GoSL”) during Q1 2020. Total remittances included Direct Taxes and Levies amounting to Rs1.4Bn as well as Rs3.1Bn in Consumption Taxes collected on behalf of the GoSL.

The Group capital expenditure was prioritised in Q1 2020, amid Covid-19 outbreak and associated challenges, which recorded at Rs2.0Bn representing a capex to revenue ratio of 7%.

The Group continued to exhibit a low geared balance sheet with the Net Debt to EBITDA ratio being maintained at 0.81x as at end of March 2020.

At an entity level, Dialog Axiata continued to contribute a major share of Group Revenue (70%) and Group EBITDA (75%). The Company further consolidated its market leadership position in the Sri Lanka to reach 15.0 Mn subscribers during the quarter.

Company Revenue was impacted by slowdown in core revenues and reached Rs20.5Bn for Q1 2020.

Company NPAT was recorded at Rs1.6Bn for Q1 2020 declining 45% QoQ and 65% YoY due to the impact from non-cash translational forex losses. Dialog Television (“DTV”), continued to consolidate its leadership position in the Digital Pay Television space with a subscriber growth of 25% YoY to reach 1.5Mn as at end of March 2020. DTV Revenue remained stable QoQ and was up 8% YoY, amid growing subscription revenue, to reach Rs 2.2Bn.

Dialog Broadband Networks (“DBN”) featuring the Group’s Fixed Telecommunications and Broadband Business recorded revenue of Rs7.4Bn for Q1 2020, down 2% QoQ and up 10% YoY.

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