Dialog Axiata posts Rs 1.37 b NPAT in Q2

The Dialog Axiata Group posted a robust NPAT of Rs. 1.37 bn for the second quarter of 2010 taking 1H 2010 NPAT to Rs 2.08 bn, a 122 percent increase YoY.

Dialog Axiata PLC formerly known as Dialog Telekom PLC announcing its financial results for the six months ended June 30, 2010 yesterday said Group profit was underpinned by robust performance at Company Level, with Dialog Axiata PLC featuring the Group’s mobile business posting a Q2 and 1H profit of Rs 1.81 bn. and Rs 3.09 bn. respectively, up 137 percent YoY.

While Dialog Television (Pvt.) Ltd (DTV) and Dialog Broadband Networks (Pvt.) Ltd (DBN) remained dilutive at NPAT level, both subsidiaries recorded positive EBITDA in Q2 2010 signalling the consolidation of performance improvements in the Fixed Line, Broadband and Television businesses of the Group.

Dialog Group revenues were recorded at Rs 20.11 bn. for the six months ended June 30, 2010, up 15 percent YoY. Similarly Group Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) was up 80 percent to Rs 7.15 bn. over the same period. EBITDA margin improved by 13 percentage points YoY, to reach 36 percent.

The company continued to register positive gains in the mobile market during Q2 2010 and revenue grew by a robust 15 percent compared to 1H of 2009 and by 2 percent QoQ.

The subscriber base stood at 6.6 mn. at end of June 2010, recording a 10 percent growth YoY. The company EBITDA for 1H of 2010 grew by 67 percent YoY to reach Rs 7,101 mn, improving the EBITDA margin to a robust 39 percent an increase of 13 percentage points compared to 1H of 2009. 1H of 2010 EBITDA performance featured a 12 percent QoQ increase in EBITDA during Q2 with the EBITDA margin improving by 3 percentage points to reach 40 percent for the quarter.

In line with growth at EBITDA level, Company NPAT for the 1H of 2010 was recorded at Rs 3,090 mn., up 137 percent from a negative NPAT of Rs 8,363 mn. in the previous year. On an adjacent QoQ basis, Company NPAT grew by a significant 42 percent to reach Rs 1,813 mn. for the 2nd Quarter of 2010.

Strong EBITDA performance was supported by a 28 percent decrease in non-operating costs (corrected to exclude the network modernisation charge of Rs 6 bn. in the previous year) relative to the corresponding period in 2009.

DBN recorded a positive EBITDA of Rs 33 mn. in Q2 2010, a 113 percent growth compared to Q2 2009, signalling turnaround at EBITDA level following negative performance over the past seven quarters.

Notwithstanding significant improvements in DBN’s cost structure, revenue recorded at Rs 577 mn., dropped by a marginal 2 percent and 1 percent relative to Q1 2010 and Q2 2009 respectively.

Broadband revenues grew by 26 percent fuelled by a 17 percent YoY growth in fixed broadband subscribers.

DTV recorded revenue of Rs 522 mn. in Q2 2010, up 7 percent QoQ and 27 percent relative to Q2 2009. Pay TV subscribers increased by 17 percent relative to Q2 2009 to reach a total of 160,000. DTV reported an EBITDA of Rs 30 mn. in Q2 2010, signifying the second successive quarter of positive EBITDA performance, an improvement of 23 percent and 135 percent on QoQ and YoY basis respectively. EBITDA growth was fuelled by robust increase in usage revenues.