Dialog Axiata PLC’s (Dialog) net earnings took a beating during the third quarter of this year (3Q2011), registering a 17.7% drop to Rs 1.39 billion according to recent results released by the company.
Dialog’s aggregate nine month earnings was up by 4.3% to Rs 3.93 billion with the group recording a healthy revenue growth posting Rs 11.64 billion which is a 10.3% increase year on year (YoY) for 3Q2011.
The company’s Earnings Before Interest, Taxes, Depreciation and Amortization (EBIDTA) was at Rs 4.35 billion showing a 7.8% growth compared to the same period last year. The company in a statement said that this includes the telecommunication development refunds amounting to Rs 342 million from the Telecommunications Regulatory Commission.
Dialog’s expenditure continued to increase on the back of network operating costs combined with increased depreciation charges with distribution and administration cost margins increasing by 2% and 3% respectively. Tax expenditure grew by 198.9% adding to the negative growth.
Group net profit for the nine months ending 30th September was recorded at Rs 3.9 billion, up by 4% YoY. “The positive performance trajectory at the group level was underpinned by robust growth in the group’s core mobile business,” the company’s statement said. Company revenue for the nine months ending 30th September was recorded at Rs 30.9 billion, up 10% relative to the corresponding period in 2010.
The statement said that the cost expansion at company level is attributable mainly to revenue linked costs associated with International origination and Domestic Interconnection Charges, and escalation in network operating costs in line with the aggressive expansion of the company’s 2G and 3G infrastructure footprint.
Dialog Television (DTV) saw a YoY revenue growth of 13% to reach Rs 1.7 billion for 1st nine months of 2011. EBITDA for Q32011 was posted at Rs 118 million and Rs 377 million for the 1st nine months of 2011.
Dialog Group’s capital expenditure for the nine months ending 30th September 2011 was recorded at Rs 6.7 billion. The company said that the capital expenditure was directed mainly towards strategic investments in High Speed Mobile Broadband and Optical Fibre Network expansion projects. |
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