Business Times

Dialog takes Rs 638 million hit from December devaluation

Dialog Axiata Plc, Sri Lanka’s top mobile phone provider, may not be the only company to take a hit from the sudden devaluation of the Rupee in December but that single event saw the company report substantial losses totalling Rs 638 million. However that didn’t ruin the company’s profits.

“Growth in Group profitability was achieved on the backdrop of substantial foreign exchange (translational/non-cash) losses totalling to Rs. 638 million, resulting from the devaluation of the Sri Lanka Rupee in the fourth quarter,” the company said in a statement announcing its year-end 2011 results.

The company sustained its revenue growth at Rs 11.9 billion, up by over 10 % during the fourth quarter of last year supported by about 11% year on year outgoing volume growth and about 4% year on year increase in the subscriber base.

It said revenue growth together with continued operational improvements led to the group posting a healthy 9% quarter on quarter growth in Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA). The fourth quarter 2011 EBITDA was recorded at Rs 4.7 billion, inclusive of Rs 311 million accruing from the recognition of the Telecommunication Development Fund reimbursement from the Telecommunication Regulatory Authority, the statement said.

Group EBITDA for the last financial year was recorded at Rs 16.4 billion, up 9% compared to the corresponding period in 2010 and featured an EBITDA margin of 36%. Group net profit for Q4 2011 was posted at Rs 1.4billion, up 2% quarter on quarter, according to the statement. Net profit for last year was recorded at Rs 5.4billion, up by 6% year on year.

Core-mobile revenue has been the major contributor to the group’s revenue, accounting for approximately 90% of the total revenue. Dialog said that the increase in affordability has served as the catalyst for the increase in the pre-paid as well as the post-paid subscriber base for the year ended 2011. The group recorded strong revenue growth across all segments to reach Rs 11.9 billion during the fourth quarter recording a quarter on quarter growth of 3%. Group revenue grew 10% during last year to Rs 45.6 billion, the statement said.

The company recorded revenues of Rs 10.9 billion and Rs 41.8 billion for the fourth quarter and last year, the statement said.

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