Corporate

JKH profit before tax Rs. 1.53b in Q1

John Keells Holdings has recorded a Profit Before Tax (PBT) of Rs. 1.53 billion for the first quarter an increase of 60 per cent compared to the Rs. 959 million in the corresponding period in the previous year.

The profits attributable to Equity Holders for the first quarter, ended June 30, 2010, of Rs. 1.01 billion, reflects an increase of 55 per cent compared to the corresponding period in the previous year.

The revenue for the first quarter ended June 30, 2010 ,was Rs. 12.92 billion, an increase of 28 per cent over the corresponding period in the previous year.

Transportation PBT for the first quarter increased by 52 per cent to Rs. 802 million compared to the same period last year [2009/10 Q1: Rs. 529 million].

All businesses in this segment showed an improved performance.

Despite the full complement of hotel rooms not being available due to refurbishment and upgrades Leisure recorded a significant improvement compared to the same period last year [Loss of Rs. 14 million versus a loss of Rs. 47 million in Q1 last year] on the back of better performance by the Sri Lankan segment.

Property recorded an increase of 324 per cent in PBT to Rs. 145 million compared to the corresponding period last year [2009/10 Q1: Rs. 34 million].

The better performance in the first quarter compared to the corresponding period of last year is due to the revenue recognition cycle of the Emperor project.

Consumer foods and retail PBT for the quarter showed an increase of 313 per cent to Rs. 169 million compared to the first quarter last year [2009/10 Q1: Rs. 41 million].

The soft drinks and ice cream businesses and the Keells Food Products business saw substantial volume growth during the quarter. The processed meats business in India is operating under a new model and we expect an improved financial performance this year.

The retail business bettered its performance this quarter over the corresponding period last year due to higher revenue and margins.

Financial Services recorded a PBT of Rs. 377 million for the first quarter is a 74 per cent increase compared to the same period last year [2009/10 Q1: Rs. 217 million].

John Keells Stock Brokers, Union Assurance and the banking associate of the financial services group, Nations Trust Bank, all contributed to this improved performance.

The Information Technology Group recorded a PBT of Rs. 0.8 million for the first quarter [2009/10 Q1: Loss Rs. 32 million] on the back of an improved performance by the Office Automation segment.

Others comprising of Plantation Services, John Keells Capital and the Corporate Centre recorded a decrease in PBT for the first quarter of 76 per cent to Rs. 52 million [2009/10 Q1: Rs. 217 million]. The drop in prices due to increased global supply of tea, affected the PBT of Plantation Services.

Seylan Bank records 510.5 m profit

Seylan Bank has posted Rs. 510.5 m profit in the six months of 2010 ending 30 June30, a 270 per cent increase compared with the Rs. 137.8m in the corresponding period the previous year.

The Bank's pre-tax profit in the six months ending 30 June 2010 was Rs. 809.6 m, up by nearly 292% from the Rs. 206.4m in the corresponding period the previous year.

Among the major contributory features was the Bank's ability to increase its deposit base to Rs. 106,983 m as at June 2010 and growing its advances book during the six months. The bank focused on recovering non-performing advances and achieved satisfactory results which helped the NPA ratio to come down.

Chairman Seylan Bank, Eastman Narangoda said that these positive financial results were yet again indicative of the faith and confidence the general public have in the Seylan Bank. Ever since the Central Bank-appointed new Board of Directors, we have been on an upward growth.

Among the key reasons for the Bank's rapid turnaround in both stability and profitability are our wide-reaching strategic plan and aggressive recovery drive. These embraced several areas and, in turn, successfully restored investor confidence.

The Bank has substantially improved its performance indicators. Return-on-average assets have increased to 1.18percent from 0.65percent during 2009. Return-on-equity also has improved to 9.41% from 6.78% in 2009.

The interest margin has also seen an increase to 5.51 percent compared to 5.23percent.

Net non-performing advances ratio has dropped to 18.38percent from 22.33 as at December 31 2009.

Last year, Seylan Bank reported a Rs. 543.301 m Profit after Tax for 2009 representing an increase of 250percent over the previous financial year.

During the same period, the Bank's cost-to-income ratio showed a marked improvement decreasing from 75.79percent to 67.82percent, while the total capital adequacy ratio under severe pressure during the end 2008 crisis rose from 8.06percent to 11.74percent in 2009. With the current positive trend, I am confident that the bank will not only regain its previous position but also will see an excellent performance by the end of the year.

Dialog reports Rs 1.81 b profit in Q2

Dialog Axiata PLC formerly known as Dialog Telekom PLC Dialog Group recorded a revenue of Rs. 20.11b for the six months ended June 30, up 15 percent year on year (YoY).

Similarly Group Earnings Before Interest, Tax, Depreciation & Amortisation (EBITDA) was up 80 percent to Rs. 7.15b over the same period. EBITDA margins improved by 13 percentage points to reach 36 percent.

The Group posted a robust NPAT of Rs. 1.37b for the second quarter of 2010 taking 1H 2010 NPAT to Rs. 2.08b, a 122 percent increase YoY.

Group profit was underpinned by robust performance at company level, with Dialog Axiata PLC featuring the Group's mobile business posting at Q2 and 1H profit of Rs. 1.81b and Rs. 3.09b an increase of 137 percent YoY.

While DTV and DBN remained dilutive at NPAT level, both subsidiaries recorded positive EBITDA in Q2 signalling the consolidation of performance improvements in the Fixed Line, Broadband and Television businesses of the Group.

On an adjacent QoQ basis (Q2 vs Q1), the consistent focus on strategic cost recalling initiatives implemented over the past quarters, supplemented by multiple revenue enhancement strategies continued to deliver traction, with QoQ improvements in Group EBITDA, and NPAT - of 15 percent and 95 percent respectively.