Dialog Continues Consistent Performance with a Stable Q3

11th November 2021         Colombo


  • Stable Quarter with Revenue growth of +5% QoQ; EBITDA and PAT Out Pace Revenue at +10% QoQ and +17% QoQ respectively
  • Direct and Indirect Taxes, Fees and Levies Paid to GoSL tops Rs17.6Bn
  • Ramp up in Network investments translating to a Capital Investment of Rs24.7Bn;

Dialog Axiata PLC announced, Thursday 11th November 2021, its consolidated financial results for the nine months ended 30th September 2021. Financial results included those of Dialog Axiata PLC (the “Company”) and of the Dialog Axiata Group (the “Group”).

The Group sustained consistent performance in Q3 2021 to record growth across all key business segments namely, Mobile, Fixed Line, Digital Pay Television, International and Tele-infrastructure. The Quarter-on-Quarter (“QoQ”) revenue growth was recorded at 5% to reach Rs36.9Bn for Q3 2021. Group Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) reached Rs15.6Bn for Q3 2021, up 10% QoQ due to diligent cost management. Driven by EBITDA performance Group Net Profit After Tax (“NPAT”) reached Rs5.4Bn to record a growth of 17% QoQ.

On a YTD basis consolidated Group Revenue was recorded at Rs104.8Bn for the nine months ending 30th September 2021 to report a growth of 19% Year-to-Date (“YTD”). Underpinned by revenue performance and cost rescaling initiatives, Group EBITDA grew 19% YTD to reach Rs43.5Bn. Downstream of EBITDA performance Group NPAT was recorded at Rs12.5Bn YTD.

Dialog Group continued to be a significant contributor to state revenues, remitting a total of Rs17.6Bn to the Government of Sri Lanka (“GoSL”) during the nine months ended 30th September 2021. Total remittances included Direct Taxes and Levies amounting to Rs6.8Bn and Rs10.8Bn in Consumption Taxes collected on behalf of the GoSL.

As a result of the ramp up in network upgrades to meet the growing demand, Group capital investments for the first nine months of 2021 reached Rs24.7Bn representing a capex to revenue ratio of 24%. Capital expenditure was directed towards investments in High-Speed Broadband infrastructure to further expand Dialog’s leadership as the widest and fastest network in Sri Lanka. Accordingly, Group Operating Free Cash Flow (“OFCF”) declined to Rs16.0Bn for the first nine months of 2021 from Rs21.5Bn recorded for the corresponding period in 2020. However, Dialog Group continued to exhibit healthy and low geared balance sheet as the Net Debt to EBITDA ratio declined to 0.26 times as at 30th September 2021.

Stepping up the commitment to support the GoSL and Ministry of Health (“MOH”) during the Covid-19 pandemic, Dialog Axiata PLC, invested towards enhancement of critical care infrastructure in 18 hospitals selected by the MOH. The selected hospitals will be provided with High Dependency Units and other state- of-the-art equipment. Furthermore fully-automatic Oxygen Concentrators, used to treat critical COVID-19 and other respiratory cases will also be provided as part of this initiative.

Dialog extended its resources to improve access to education by enhancing the Nenasa Digital Education bridge with the commitment to launch 10 Education Channels on Dialog Television and in Dialog ViU App in partnership with the Ministry of Education. These channels are accessible over Dialog Digital Satellite TV and on any smartphone by downloading the ViU Mobile TV app. This service is made available free of any PayTV subscription or data charges.

At an entity level, Dialog Axiata PLC continued to contribute a major share of Group Revenue (64%) and Group EBITDA (71%). The Company revenue was record at Rs23.5Bn for Q3 2021 up 5% QoQ and Rs67.6Bn for the first nine months of 2021 up 11% YTD. Revenue performance was a result of growth witnessed in both Data and Voice segments. Downstream of the revenue performance Company EBITDA was recorded at Rs10.8Bn for Q3 2021 and Rs30.8Bn for nine months ending 30th September 2021 up 7% QoQ and 13% YTD respectively. Company NPAT declined both on QoQ and YTD basis as the depreciation increased amidst ramping up in capital expenditure as alluded to earlier. Accordingly, NPAT declined 16% QoQ to reach Rs3.1Bn for Q3 2021 and 4% YTD to reach Rs8.6Bn for first nine months of 2021.

Dialog Television (“DTV”), continued its leadership position in the Digital Pay Television space with a subscriber growth of 14% YoY by end Q3 2021. Underpinned by subscriber growth DTV Revenue grew 9% QoQ to reach Rs2.7Bn for Q3 2021. On a YTD basis revenue was recorded at Rs7.6Bn for the first nine months of 2021. Downstream of Revenue performance, DTV EBITDA reached Rs2.4Bn YTD. Accordingly, DTV Net Loss decreased to Rs281Mn for the nine months ended 30th September 2021 relative to a Net Loss of Rs845Mn for the corresponding period in 2020.

Dialog Broadband Networks (“DBN”) featuring the Group’s Fixed Telecommunications, Broadband and International Businesses recorded revenue of Rs12.0Bn for Q3 2021 up 9% QoQ and Rs32.3Bn for the nine months ended 30th September 2021. The revenue growth mainly resulted from home broadband and international revenues. Driven by strong revenue performance, DBN EBITDA was recorded at Rs10.5Bn for the nine months ended 30th September 2021 while Net Profit reached Rs3.6Bn for the same period.

More details are available at the following links:
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