Dialog consolidates NPAT at Rs 3.9b in 1H, 2015

Dialog Axiata PLC announced its consolidated financial results for the six months ended 30th June 2015 including those of Dialog Axiata PLC (the 'Company') and of Dialog Axiata Group (the 'Group') post-consolidation with subsidiaries Dialog Broadband Networks (Pvt) Ltd (DBN) and Dialog Television (Pvt) Ltd (DTV).

The Group continued its growth momentum across Mobile, Digital Pay Television, Tele-Infrastructure and Fixed Line businesses to record a consolidated revenue of Rs35.1bn for 1H 2015 demonstrating a growth of 6% Year to Date (YTD). Group Revenue grew 2% Quarter on Quarter (QoQ) to be recorded at Rs17.7bn for Q2, 2015.

The second quarter of 2015 featured the impact of the industry wide introduction of a 25% Bonus on Mobile Prepaid Domestic Calls with effect from April 7, 2015.

Robust revenue growth combined with operational efficiencies derived through cost management initiatives resulted in Group EBITDA for 1H 2015 growing by 20% YTD to reach Rs. 11.9 bn. The Group EBITDA margin for 1H 2015 was accordingly recorded at 33.9%. On a QoQ basis however, Group EBITDA declined by 1% QoQ to Rs5.9 bn. Downstream of EBIDTA, Group NPAT (Net Profit After Tax) was recorded at Rs3.9 bn (up 33% YTD) and Rs1.9 bn (down 4% QoQ) for 1H 2015 and Q2 2015.

The Dialog Group remitted a total of Rs12.0 bn to the Government of Sri Lanka during 1H 2015. Total remittances included direct taxes and levies as well as consumption taxes collected on behalf of the GoSL. Direct taxes, fees and levies contributed by the Dialog Group totalled to Rs 4.9 bn inclusive of income tax.

The Group additionally collected consumption taxes, totalling to Rs7.1 bn on behalf of the GoSL in 1H 2015, comprising in the main of Telecom Levy collections amounting to Rs 5.6 bn.

At an entity level, Dialog Axiata PLC featuring the Mobile, International and Tele-Infrastructure segments of the Group portfolio continued to contribute a major share of Group Revenue (84%) and Group EBITDA (84%).

The Company further consolidated its market leading position within Sri Lanka's mobile market to surpass the 10 mn subscriber milestone during the second quarter.

Company Revenue grew by 3% QoQ to reach Rs15.2 bn, with revenue for 1H 2015 being recorded at Rs. 29.8 bn, up 5% compared to 1H period in 2014.

DTV's Pay TV subscriber base grew by 37% YoY to be recorded at 534,000 as at the end of June 2015.