Dialog drives growth in 2018 on the back of forex losses on rupee fall

The Dialog Group, Sri Lanka’s largest mobile phone operator, continued its growth momentum across all key business segments including mobile, tele- infrastructure, digital pay TV and fixed line to record consolidated revenue of Rs. 26.1 billion for Q1 2018, up by 5 per cent Quarteron-Quarter (QoQ) and 18 per cent Year-onYear (YoY).

“Underpinned by strong revenue growth coupled with disciplined cost management and operational efficiencies, Group Ear nings Before Interest, Tax, Depreciation and Amortisation (EBITDA) grew 9 per cent QoQ and 38 per cent YoY to Rs. 9.9 billion for Q1 2018, the company announced on Friday.

The group said it adopted SLFRS 15, ‘Revenue from Contracts with Customers’, with effect from January 1 -2018. The adoption of the standard resulted in an EBITDA upliftment of Rs. 422 million for Q1 2018.

Group Net Profit After Tax ( NPAT) declined 10 per cent QoQ on the back of a non-cash translational forex loss of Rs. 369 million for Q1 2018 compared to a gain of Rs. 68 million in Q4 2017, as the Sri Lankan rupee depreciated against the US dollar by 1.5 per cent in Q1 2018. NPAT grew 84 per cent YoY to Rs. 2.8 billion.

“Dialog continued to be a significant contributor to state revenues, remitting a total of Rs. 9.2 billion to the Government during the first three months of 2018. Total remittances included direct taxes and levies amounting to Rs. 2.9 billion as well as Rs. 6.3 billion in consumption taxes collected on behalf of the state,” the report said.

Capital expenditure for Q1 2018 totalled Rs. 2.4 billion being directed mainly towards investments in High- Speed Broadband infrastructure to further strengthen the group's leadership in Sri Lanka's Broadband sector.

The company further consolidated its market leading position in the Sri Lankan mobile space to surpass 13 million sub- scribers during the quarter. Company Revenue for Q1 2018 grew by 2 per cent QoQ and 13 per cent YoY to reach Rs. 20.6 billion.

Dialog Television ( DTV) achieved yet another milestone during the quarter, reaching 1 million households in the country. DTV revenue grew by 9 per cent YoY and QoQ to reach Rs. 1.6 billion for Q1 2018 driven by aggressive subscriber acquisition.

“Leveraging its broader subscriber base, DTV introduced Sri Lanka’s first online media buying platform, adhub.lk, enabling small/medium entrepreneurs and corporates to advertise on Dialog Television,” it said.