Dialog consolidates performance with strong 1stQ results

Dialog Axiata PLC’s Group Net Profit After Tax (NPAT) has recorded significant growth in the first quarter ending March 2019 to reach Rs. 4.9 billion against Rs. 0.1billion in the same quarter last year.

The company, in a media release, said that it benefited from strong Group Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) performance and non-cash translational forex gains. On a YoY basis the NPAT growth was recorded at 72 per cent.

The group continued its growth momentum across all key business segments, namely, Mobile, International, Tele-infrastructure, Digital Pay Television and Fixed Line to record a consolidated revenue of Rs. 29 billion, demonstrating a growth of 2 per cent Quarter-on-Quarter (QoQ) and 11 per cent Year-on-Year (YoY).

Underpinned by strong revenue growth and cost optimisation, EBITDA grew 5 per cent QoQ and 17 per cent YoY to Rs. 12 billion for Q1 2019.

Dialog Group continued to be a significant contributor to state revenues, remitting a total of Rs.9.4 billion to the government during Q1 2019. Total remittances included direct taxes and levies amounting to Rs.3.6 billion as well as Rs.5.8 billion in consumption taxes collected on behalf of the government.

The release said that for the first time in South Asia, Dialog successfully demonstrated a fully standards-based 5G mobile service, integrating 5G network infrastructure with the world’s fastest foldable 5G device. “This demonstration marks yet another instance of the Dialog Group’s efforts in spearheading the country’s transformation into a regional technology hub, leveraging on the unique capabilities of the 5G technology,” it said.

Dialog, as a company, further consolidated its market leadership position in the Sri Lankan mobile space to surpass 14.3 million subscribers during the quarter.

Company revenue for Q1 2019 however declined by 2 per cent QoQ, albeit growing 1 per cent YoY to reach Rs. 20.8 billion.

Dialog Television (DTV), continued to consolidate its leadership position in the Digital Pay Television space with a subscriber growth of 16 per cent YoY to reach 1.2 million as at end of December 2019. DTV revenue grew 9 per cent QoQ and 12 per cent YoY amid growing subscription revenue.

Dialog Broadband Networks featuring the group’s fixed telecommunications and broadband business recorded revenue of Rs. 6.7 billion for Q1 2019, representing an increase of 22 per cent QoQ and 83 per cent YoY.