Dialog profit tops Rs 1.2 b in Q1
The Dialog Axiata Group recorded a strong growth in revenue to reach
Rs 10.9 billion in the first quarter 2011, up 10 percent Year on Year
(YoY) whilst posting a net profit of Rs 1.2 billion, up 64 percent
compared to Q1 2010.
Financial outcomes at group level were driven by strong performance
across the Company and its subsidiaries. Group profitability was founded
on a healthy momentum in EBITDA growth of 7 percent, founded on the
positive outcomes of strategic cost re-scaling in combine with revenue
gains. Judicious balance sheet restructuring initiatives featuring the
achievement of a lower cost debt profile has underpinned the translation
of EBITDA performance to commensurate growth in Net profit at Group,
Company and subsidiary levels, a company press release said.
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The Dialog Axiata PLC,(Company) featuring in the main, the Mobile,
International Services and Tele-Infrastructure businesses of the Group
continued to leverage its market leading position to deliver strong
growth in revenue and profitability.
The Company recorded revenue of Rs 10.0 billion for Q1 2011 and a
profit of Rs 1.4 billion, an increase of 10 percent and 7 percent
relative to Q1 2010 respectively. Growth in Mobile revenues was driven
by a healthy growth in mobile subscribers and the increased adoption of
mobile broadband services.
The Company’s customer base surpassed seven million in Q1 2011.
Company revenues were further bolstered through Interconnection
revenues of Rs 0.4 billion accruing since the implementation of the
interconnection regime in June 2010.
Notwithstanding a 10 percent growth in revenues, EBITDA at company
level contracted by 2 percent YoY to be recorded at Rs 3.3 billion in Q1
2011. The Company’s operating costs (excluding depreciation) grew by 17
percent compared to Q1 2010.
International origination costs and domestic interconnection charges
grew in tandem with the growth in corresponding revenue lines and formed
a significant contributor (65 percent) to YoY cost expansion.
In addition to the aforementioned revenue linked (direct) costs,
network costs increased (18 percent) in tandem with the aggressive
expansion of the company’s network infrastructure footprint and price
hikes with respect to key inputs including electricity and fuel.
The variation in costs YoY, was further influenced by the impact of
VAT expenditure arising from the changes in the VAT environment
applicable to the Telecom Industry.
Dialog Television (Pvt.) (DTV) continued its growth momentum with
revenue shoring up by 15 percent from Rs 490 million in Q1 2010 to Rs
561 million in Q1 2011. The DTH Pay Television business added around
13,000 new customers in the first quarter of 2011 cumulating to a
subscriber base of over 181,000 as at March 31, 2011.
Dialog Television (Pvt.) Ltd (DBN) continued to consolidate the
performance trends of the previous quarters to record its fourth
successive quarter of positive EBITDA in Q1 2011. Q1 EBITDA was recorded
at Rs 145 million compared to a negative EBITDA of Rs 44 million in the
corresponding quarter in 2010. Healthy Free Cash Flows underpin strong
group balance sheet
The Group continued to record positive Free Cash Flows (FCF) for the
fifth consecutive quarter, with Q1 2011 FCF being recorded at Rs 1.1
billion.Capital expenditure in Q1 amounted to Rs 2.5 billion, 54 percent
higher compared to the corresponding quarter in 2010.
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