Dialog Axiata PLC announced, Wednesday 11th November 2020, its consolidated financial results for the nine months ended 30th September 2020. Financial results included those of Dialog Axiata PLC (the “Company”) and of the Dialog Axiata Group (the “Group”).
The Group concluded Q3 2020 with stable performance across Mobile, Fixed Line and International businesses despite multiple challenges stemming from the Covid 19 pandemic. Group Revenue recorded a growth of 5% on a Year-on-Year (“YoY”) basis to reach Rs30.5Bn for Q3 2020 mainly due to the recovery in Mobile Revenue. Group Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) reached Rs13.6Bn for Q3 2020 up 14% YoY driven by Revenue performance and diligent cost control initiatives. Group Net Profit After Tax (“NPAT”) reached Rs4.8Bn to record growth >100% YoY for Q3 2020 due to EBITDA performance and forex gain of Rs.188Mn relative to the forex loss of Rs1.0Bn in Q3 2019.
On a Year-to-Date (“YTD”) basis the Group performance remained moderate owing to free offers and challenges associated with Covid-19 dampening the performance in Q2 2020. The YTD Revenue impact from Covid-19 is estimated to be Rs4Bn led by Roaming, Enterprise, Television and Retail Mobile segments.
The Dialog Group recorded a consolidated revenue of Rs87.9Bn for the nine months ended 30th September 2020, demonstrating a growth of 1% YTD. On the back of cost control initiatives, Group EBITDA grew 4% YTD to reach Rs36.5Bn. The Group EBITDA Margin was accordingly recorded at 41.5% for the nine months ended 30th September 2020. Underpinned by stable EBITDA performance Group NPAT demonstrated a growth of 3% YTD to record Rs8.6Bn for the nine months ended 30th September 2020.
Dialog Group continued to be a significant contributor to state revenues, remitting a total of Rs13.8Bn to the Government of Sri Lanka (“GoSL”) during the nine months ended 30th September 2020. Total remittances included Direct Taxes and Levies amounting to Rs4.1Bn and Rs9.7Bn in Consumption Taxes collected on behalf of the GoSL.
Group capital investment for the first nine months of 2020 was recorded at Rs12.0Bn representing a capex to revenue ratio of 14%. Capital expenditure was directed in the main towards continued investments in transforming Dialog into a digital telco, by digitising all spheres of the organisation and to further strengthen the Group’s leadership in Sri Lanka’s mobile and home Broadband sectors. Group Operating Free Cash Flow (“OFCF”) has recorded at Rs21.5Bn for the first nine months of 2020 up from Rs17.6Bn recorded for the corresponding period in 2019. Consequently, cash balance increased by Rs8.4Bn as compared to year end 2019 to record at Rs13.3Bn by end September 2020. Dialog Group continued to exhibit healthy and low geared balance sheet as the Net Debt to EBITDA ratio remained at 0.53 times as at 30th September 2020.
At an entity level, Dialog Axiata PLC (the “Company”) continued to contribute a major share of Group Revenue (69%) and Group EBITDA (75%). Company revenue was record at Rs21.1Bn for Q3 2020 and Rs60.6Bn for the first nine months of 2020 up 3% YoY albeit declining 2% YTD, mainly due to the Covid-19 related core Revenue slowdown.
Company EBITDA was recorded at Rs10.2Bn for Q3 2020 up 12% YoY while it reached Rs27.3Bn for the first nine months of 2020 representing an increase of 2% YTD. Downstream of EBITDA performance the Company NPAT was recorded at Rs4.6Bn for Q3 2020 and Rs9.0Bn for first nine months of 2020, increasing 5% YTD.
Dialog Television (“DTV”), continued its leadership position in the Digital Pay Television space with a subscriber growth of 11% YoY by end Q3 2020. DTV Revenue declined 3% YoY to reach Rs2.2Bn for Q3 2020 amid continued consumer wallet pressure. On a YTD basis revenue was down 1% to record Rs6.5Bn for nine months ended 30th September 2020, due to Covid-19 associated free services and slowdown in Q2 2020. Downstream of Revenue performance, DTV EBITDA recorded a decline of 9% YTD to reach Rs1.7Bn for the first nine months of 2020. Accordingly, DTV Net Loss increased to Rs845Mn for the nine months ended 30th September 2020 relative to a Net Loss of Rs335Mn for the corresponding period in 2019.
Dialog Broadband Networks (“DBN”) featuring the Group’s Fixed Telecommunications, Broadband and International Businesses recorded revenue of Rs8.0Bn for Q3 2020 up 10% YoY while the Revenue was recorded at Rs23.3Bn for the nine months ended 30th September 2020 up 13% YTD. DBN EBITDA recorded a growth of 11% YTD to reach Rs7.6Bn for the nine months ended 30th September 2020. NPAT reached to Rs626Mn up 8% YTD for the first nine months of 2020.