Dialog Axiata PLC announced, yesterday its consolidated financial results for the three months ended March 31, 2019. Financial results included those of Dialog Axiata PLC (the “Company”) and of the Dialog Axiata Group (the “Group”).
The Group continued its growth momentum across all key business segments, namely, Mobile, International, Tele-infrastructure, Digital Pay Television and Fixed Line to record consolidated revenue of Rs 29 billion for Q1, 2019, demonstrating a growth of 2% quarter-on-quarter (“QoQ”) and 11% year-on-year (“YoY”).
Underpinned by strong revenue growth and cost optimisation, Group Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) grew 5% QoQ and 17% YoY to record at Rs12 billion for Q1 2019. Dialog Group adopted SLFRS 16, ‘Leases’, with effect from January 1, 2019. The adoption of the standard resulted in an EBITDA upliftment of Rs 639 million for Q1 2019 which is a 2.2 % increase in the EBITDA margin. The impact on Net Profit was not material. Normalised for the positive impact from SLFRS 16, the EBITDA margin was recorded at 39.4% for Q1 2019.
The Group Net Profit After Tax (“NPAT”) recorded significant growth QoQ to reach Rs 4.9 billion for Q1 2019 against Rs 0.1 billion recorded in Q4 2018, benefiting from strong EBITDA performance and non-cash translational forex gains. On a YoY basis the NPAT growth was recorded at 72%. The Sri Lankan Rupee (“LKR”) appreciated against the United States Dollar (“USD”) by 3.6% in Q1 2019 vs. a depreciation of 1.5% and 8.2% in Q1 2018 and Q4 2018 respectively. Normalised for non-cash translational forex losses/gains NPAT was recorded at Rs3.6Bn, up 54% QoQ and 11% YoY.
Dialog Group continued to be a significant contributor to state revenues, remitting a total of Rs9.4Bn to the Government of Sri Lanka (“GoSL”) during Q1 2019. Total remittances included Direct Taxes and Levies amounting to Rs3.6Bn as well as Rs5.8Bn in Consumption Taxes collected on behalf of the GoSL.
The Group capital expenditure for Q1 2019 totalled to Rs2.6 billion representing a capex to revenue ratio of 9%. Capital expenditure was directed in the main towards investments in High-Speed Broadband infrastructure to further strengthen the Group’s leadership in Sri Lanka’s Broadband sector.
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