Dialog Posts Net Profit of Rs 1.69bn for 3rd Quarter of 2010

28th October 2010, www.dailynews.lk

Dialog Axiata PLC announced financial results for the nine months ended September 30, 2010.

Financial results included those of Dialog Axiata PLC and of the Dialog Axiata Group post consolidation with subsidiaries Dialog Broadband Networks and Dialog Television.

The Group posted a robust net profit after tax (NPAT) of Rs 1.69 billion for the third quarter of 2010 taking YTD 2010 NPAT for the first nine months to Rs 3.77 billion, a 138 percent increase YoY.

Group profit was underpinned by robust performance at Company level, with Dialog Axiata PLC featuring the Group's mobile business, posting a Q3 and nine months profit of Rs 1.90 billion and Rs 4.99 billion respectively, up 162 percent YoY.

Subsidiaries DTV and DBN delivered robust growth in terms of enhanced profitability at Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and NPAT levels.

Enhanced profitability at subsidiary level was underpinned by significant performance improvements in the Fixed Line, Broadband, and Television businesses of the Group. On an adjacent QoQ basis EBITDA (positive) and NPAT (negative) improved by 173 percent and 48 percent for DTV and 432 percent and 57 percent for DBN respectively.

Dialog Group revenues were recorded at Rs 30.67 billion for the nine months ended September 30, 2010, up 16 percent YoY and 4 percent QoQ.

Similar growth was delivered in terms of Group EBITDA which was recorded at Rs 11,151 million, up 5 percent QoQ and 74 percent YoY. The Group EBITDA margin improved by 12 percentage points YoY, to reach 36 percent. The positive growth trajectory in terms of EBITDA underpinned robust growth in Group NPAT of 138 percent YoY and 23 percent QoQ.

Driven by robust performance in the mobile market, the company recorded revenues of Rs 9,671 million in Q3 2010 and Rs 28,068 million for the first nine months.

Company revenue grew by 16 percent compared to the first nine months of 2009 and 4 percent relative to the previous quarter.

Dialog's Mobile subscriber base stood at 6.7 million as at end of September 2010, recording a 6 percent growth YoY.

The third Quarter of 2010 featured the transient impact of downward tariff adjustments in the mobile market, immediately following the introduction of floor rate regulations in July 2010.

Accordingly, Core Mobile revenues (excluding interconnection income) which exhibited 13 percent growth YoY, declined marginally by 1.5 percent on an adjacent QoQ basis. Notwithstanding the transient impact of tariff adjustments across the sector, total revenues were bolstered by increased consumption of mobile voice and mobile broadband services, as well by interconnection income, resulting overall in a 4 percent growth in revenue on an adjacent QoQ basis.