Dialog Axiata records Rs. 81.6 bn for 1H 2022
Dialog Axiata PLC (Dialog Axiata PLC and Dialog Axiata Group) announced its consolidated financial results for the six months ended June 30,2022 recording a consolidated revenue of Rs. 81.6 billion for 1H 2022 and Rs. 43.3 billion for Q2 2022.
Despite the challenging environment witnessed in Q2 2022, the Group sustained its consistent performance to record strong revenue growth across all business segments, namely, mobile, fixed line, digital pay television, international and tele-infrastructure, relative to prior periods, namely, year-to date and quarter-on-quarter (“QoQ”).
However, driven by higher network spend and escalation in the cost base, Group Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) declined to Rs.27.5 billion for 1H 2022 down by a moderate 1% YTD.
On a QoQ basis EBITDA declined 14% to record Rs. 12.7 billion for Q2 2022. The Group Net Profit After Tax (“NPAT”) was impacted by the forex losses amid continued depreciation of the Rs against the USD. The resulting forex losses reached Rs. 14.2 billion for Q2 2022 and Rs. 34.3 billion for 1H 2022. Public Group NPAT recorded a loss of Rs. 28.3 billion for 1H 2022 and a loss of Rs. 12.5 billion for Q2 2022 amid forex losses.
Dialog Group continued to be a significant contributor to state revenues, remitting a total of Rs. 16.9 billion to the Government during the first six months of 2022. Total remittances included Direct Taxes and Levies amounting to Rs. 9.2 billion and Rs. 7.7 billion in Consumption Taxes collected on behalf of the GoSL. The total taxes paid increased 46% YTD and 56% QoQ. The Direct Taxes included Rs. 3.8 billion paid during the quarter in lieu of one-off Surcharge Tax of 25% applicable on PAT of FY2020.
The Group continued to support critical investments in 1H 2022 and the Capital expenditure reached Rs. 22.4 billion for 1H 2022. Capital expenditure was directed towards investments in High-Speed Broadband infrastructure to further expand Dialog’s leadership in Sri Lanka’s Broadband sector. In line with the above Capex, the Group Operating Free Cash Flow (“OFCF”) declined to Rs2.8 billion for 1H 2022.
At an entity level, Dialog Axiata PLC continued to contribute a major share of Group Revenue (60%) and Group EBITDA (69%). Company revenue was recorded at Rs. 49.1 Bn for 1H 2022 up 11% YTD and Rs. 25.1 billion for Q2 2022 up 4% QoQ, resulting from growth in the data segment.
Profitability continued to be impacted due to higher network spend and rise in operating expenses and Company EBITDA was recorded at Rs19 billion for 1H 2022 down 5% and Rs 9. billion for Q2 2022 down 11%.
Dialog Television (“DTV”), was driven by strong uptake in the prepaid segment and DTV revenue was recorded at Rs. 5.6 Bn for 1H 2022 albeit on a QoQ basis revenue declined 2% to reach Rs. 2.8 Bn for Q2 2022. DTV EBITDA declined 24% to reach Rs. 1.1 Bn for 1H 2022 due to escalation in cost base stemming from unfavorable forex movement. Consequently, DTV Net Loss increased to Rs. 2.9 Bn in 1H 2022. Dialog Broadband Networks (DBN) featuring the Group’s Fixed Telecommunications, Broadband and International Businesses recorded strong revenue growth of 42% YTD to reach Rs.28.8 Bn for 1H 2022 and Rs. 16.2 Bn for Q2 2022, due to growth in wholesale revenue coupled with Fixed Broadband revenue.