Sri Lankan mobile operator Dialog Axiata has published its consolidated financial results for the six months ended 30 June 2018, including the results of Dialog Axiata PLC (‘the Company’) and Dialog Axiata Group, which incorporates subsidiaries Dialog Broadband Networks (DBN), Dialog Television (DTV), Digital Holdings Lanka (DHL) and Colombo Trust Finance (CTF). At the top level, Dialog said it closed out the first half of 2018 ‘on a strong note, continuing its growth momentum across mobile, fixed line, digital pay-TV and tele-infrastructure businesses’ to report consolidated revenue of LKR52.7 billion (USD290.2 million), up 17% year-on-year, while revenue growth ‘moderated’ to 2% quarter-on-quarter at LKR26.6 billion for Q2 2018. Group EBITDA improved 32% y-o-y and 4% q-o-q to LKR20.3 billion (1H18) and LKR10.4 billion (2Q18), respectively, supported by ‘resilient core revenue growth coupled with efficient cost management and operational efficiencies’. Six-month Group net profit, meanwhile, climbed 46% on an annualised basis to LKR5.7 billion, although second-quarter net income flat-lined at LKR2.8 billion. Group capital expenditure for H1 2018 was recorded at LKR11.2 billion representing a CAPEX to revenue ratio of 21%. Dialog Axiata confirmed that its investment was ‘directed in the main towards investments in high speed broadband infrastructure to further strengthen the Group’s position in Sri Lanka’s broadband sector’.
Mobile arm Dialog Axiata PLC (the Company) contributed the lion’s share of Group revenue (i.e. 80%) and EBITDA (78%), driven by a strong performance from mobile which counted over 13.21 million subscribers at end-June 2018, including 1.34 million post-paid subscribers. Company revenue, meanwhile, grew by 12% y-o-y to LKR41.9 billion (1H18) and 3% q-o-q to LKR21.3 billion (2Q18), ‘underpinned by strong revenue growth and cost initiatives’. Company EBITDA was recorded at LKR15.8 billion for 1H 2018 (up 30%) and LKR8.2 billion for Q2 2018 (7%), as net income climbed 26% y-o-y to LKR5.2 billion (H1) – driven by strong EBITDA growth – and 7% q-o-q to LKR2.7 billion (Q2). In addition, Dialog Broadband Networks (DBN) – featuring the Group’s fixed telecommunications and broadband business – recorded 6M18 revenue of LKR7.2 billion (21%), EBITDA of LKR4.2 billion (35%) and net income of LKR1.0 billion (78%). DBN said its Home Broadband subscriber base increased by 7% q-o-q and 59% y-o-y. Finally, Dialog Television (DTV) consolidated its leading position in the digital pay-TV space with annual subscriber growth of 13% to reach 1.028 million by end-June 2018, it said. First-half DTV revenue grew by 5% y-o-y to LKR3.2 billion, EBITDA surged 129% to LKR400 million and net loss stood at LKR245 million, narrowing a net loss of LKR528 million for the corresponding period in 2017.