Dialog Axiata Group (the ‘Group’) concluded the 1st Half of 2017 on a strong note, continuing its growth momentum across mobile, fixed line and tele-infrastructure businesses to record a consolidated Revenue of Rs 23 bn for Q2 2017 and Rs 45.2 bn for 1H 2017, demonstrating a growth of 4% Quarter on Quarter (‘QoQ’) and 7% Year to Date (‘YTD’).
Downstream of Revenue, Group EBITDA (‘Earnings Before Interest, Tax, Depreciation and Amortisation’) recorded a growth of 13% QoQ and 9% YTD to reach Rs8.1bn for Q2 2017 and Rs15.4bn for 1H 2017 respectively. The growth was achieved on the back of concerted efforts to drive revenue growth and aggressive cost rescaling initiatives. The Group EBITDA margin accordingly improved to 34% in 1H 2017.
The 2nd Quarter Performance was impacted by externalities including the inclement weather and severe flood conditions during the month of May that dealt a significant impact on livelihood and commerce. Dialog’s intervention encompassed flood relief donations, the provision of consumption credits and extension of free of cost services which amounted to Rs 80 million.
Further the consumer spending continued to be impacted by increased consumption taxes on communication services which moderated revenue growth across Mobile, Fixed, Broadband and Pay Television Businesses.
The Group NPAT (‘Net Profit After Tax’) declined 21% YTD to be recorded at Rs3.9bn for 1H 2017, impacted by increase in depreciation, net finance cost and non-cash translational forex losses. However, NPAT demonstrated a growth of 52% QoQ to record at Rs2.3bn for Q2 2017 driven by higher EBITDA and lower non-cash translational forex losses.
The Sri Lankan Rupee depreciated against the United States Dollar by a 0.9% in Q2 2017 compared to 1.5% during Q1 of 2017.
Dialog Group continued to be a significant contributor to state revenues, remitting a total of Rs19.1bn to the Government during 1H 2017 representing an increase of 13% YTD.
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