Dialog posts 12% rise in revenues, mostly from mobile, IDD, infrastructure
View(s):Dominant local celco Dialog posted a 12 per cent year-on-year increase in consolidated revenues, to Rs. 63.3 billion, for the 12 months to end-December 31. Consolidated revenues for the final, fourth quarter of its 2013 financial year showed a one per cent growth quarter-on-quarter, to Rs. 16.3 billion.
According to a statement by Dialog, these increases were a result of “strong revenue growth across Mobile, International, Digital Pay Television, Tele-infrastructure and Fixed Line businesses”.
It said that “Group Net Profit for FY 2013 was recorded at Rs. 5.2 billion, a decrease of 14 per cent compared to FY 2012. While the corresponding period in 2012 featured substantial non-cash foreign exchange losses (totalling to Rs. 2.2 billion), the accounting impact of the said losses were mitigated through the recognition of the reversal of deferred tax provisions amounting to Rs. 2.3 billion”. Also; “Group Net profit for Q4 2013 decreased by 27 per cent to be recorded at Rs. 1.1 billion”.
However, it was also revealed that “[following] the expiry of its 15 year tax holiday in 2012, the Company recorded a provision for Income Tax on the basis of two per cent of revenue amounting to Rs. 277 million in Q4 2013 and Rs. 1.1 billion for FY 2013″.
At the same time, the statement also commented; “At an entity level, Dialog Axiata PLC (‘the Company’) featuring the Mobile, International and Tele-Infrastructure segments of the Group portfolio continued to contribute a major share of Group Revenue (88 per cent)”.
With regards to Dialog’s sector-by-sector performance, it emerged that its digital pay TV unit “continued its positive growth momentum recording YTD revenue growth of 21 per cent to reach Rs. 3.6 billion for FY 2013… Net Profit for FY 2013 was recorded at negative Rs. 302 million, compared to a Net Profit of Rs. 11 million in FY 2012 mainly due to one-off impairment of assets relating to DVBT and DVBT CPEs”. Also emerging; “DTV’s Pay Tv Subscriber base increased by 26 per cent YoY to be recorded at 332,000 as at the end of FY 2013″.
Additionally noted; “Dialog Broadband Networks (DBN) featuring the Group’s Fixed Telecommunications and Broadband Business recorded revenue of Rs. 5.8 billion for FY 2013, representing a YTD increase of 15 per cent. Revenue growth YTD was achieved in the main through the successful consolidation of Suntel Ltd., supplemented by healthy growth in data and voice solutions revenues.EBITDA contracted by 12 per cent on a YTD basis due to high network and other costs associated with fixed LTE deployment. DBN’s Net Loss for FY 2013 was recorded at Rs. 483 million relative to the Net Loss of Rs. 120 million in FY 2012. Negative NPAT performance is attributed to additional depreciation charges accruing from build out of the company’s Fixed 4G LTE network and the amortisation of spectrum license fees associated with Fixed 4G LTE spectrum assets”.
Commenting further, the statement also identified group capital expenditure for FY 2013 as being Rs. 28.3 billion. And; “Group capital expenditure for FY 2013 included strategic investments in spectrum assets featuring the acquisition of Spectrum for Mobile 4G-LTE services and the payment of spectrum re-farming fees to enable the conversion of Spectrum amalgamated through the acquisition of Sky TV for the purpose of providing fixed 4G-LTE services. Capital expenditure for FY 2013 additionally included investments made on account of Mobile license and 2G spectrum renewals. On the back of significantly higher capital expenditure, the Group recorded a negative Free Cash Flow of Rs. 8.4 billion for FY 2013″.
(JH)