Sri Lanka’s Dialog Axiata group revenue exceeds Rs. 140 billion in FY 21 - Opportunity Sri Lanka
Sri Lanka’s Dialog Axiata group revenue exceeds Rs. 140 billion in FY 21

Sri Lanka’s Dialog Axiata group revenue exceeds Rs. 140 billion in FY 21

The Morning: Dialog Axiata Group concluded its financial year on 31 December 2021 with a group consolidated revenue being recorded at Rs. 141.9 billion for fiscal year (FY) 2021, demonstrating a growth of 18% Year-to-Date (YTD). Fourth quarter (Q4) 2021 revenue was recorded as Rs. 37.1 billion, a growth of 15% Year-on-Year (YoY).
The achievement of the financial performance was under-pinned by a well coordinated delivery of innovative affordable service packs, superior network, and customer experiences amidst a challenging business atmosphere.
On the back of revenue performance and diligent cost re-scaling initiatives, group earnings before interest, tax, depreciation, and amortisation (EBITDA) grew 16% YTD to reach Rs. 58.8 billion for FY 2021 while group EBITDA was recorded at Rs. 15.3 billion for Q4 2021, a growth of 7% YoY.
The group net profit after tax (NPAT) was recorded at Rs. 17.1 billion for FY 2021 under-pinned by strong EBITDA performance, moderate growth in depreciation, and contraction in finance cost, partially offset by forex losses amounting to Rs. 2.6 billion. Group NPAT reached Rs. 4.6 billion for Q4 2021.
In line with the dividend policy and financial performance of the group and taking into account the forward investment requirements to serve the nation’s demand for broadband and digital services, the Board of Directors of Dialog Axiata PLC at its meeting held on 11 February, resolved to propose for consideration by the shareholders of the company, a dividend to ordinary shareholders amounting to Rs. 1.24 per share. The said dividend, if approved by shareholders, would translate to a dividend yield of 11.4% based on the share closing price for FY 2021. The dividend so proposed will be considered for approval by the shareholders at the annual general meeting (AGM) of the company, the data pertaining to which would be notified in due course.
Dialog Group continued to be a significant contributor to state revenues, remitting a total of Rs. 23.2 billion to the Government of Sri Lanka (GoSL) during the financial year that ended 31 December 2021. Total remittances included direct taxes and levies amounting to Rs. 8.4 billion and Rs. 14.8 billion in consumption taxes collected on behalf of the GoSL.
The group capital expenditure (capex) for the year that ended 31 December 2021 reached Rs. 31.7 billion. resulting in a capex-to-revenue ratio of 22%. Capex was directed towards investments in high-speed broadband infrastructure to further expand the group’s leadership in Sri Lanka’s broadband sector as the widest and fastest network in Sri Lanka. Accordingly, the group recorded operating free cash flow (OFCF) of Rs. 23.4 billion for FY 2021. Group net debt-to-EBITDA ratio remained at 0.34 times and maintains a healthy funding headroom position as at end of 2021.
At an entity level, Dialog Axiata PLC continued to contribute a major share of group revenue (64%) and group EBITDA (69%). Company revenue recorded a growth of 10% YTD to reach Rs. 90.9 billion for FY 2021 driven by data and voice segments. The company EBITDA was recorded at Rs. 40.5 billion for FY 2021, representing an increase of 7% YTD. Company NPAT was recorded at Rs. 11.2 billion for FY 2021 down 5% YTD.

OSL take:

Sri Lanka’s telecommunications and IT industries have posted the highest growth rates in the country even during the pandemic period. The government of Sri Lanka is also committed to transforming the country into an e-economy through the expansion of digital platforms. Therefore, the ICT and digital infrastructure development sectors have presented a host of new business/investment opportunities. Given the impressive growth and profits recorded by Sri Lanka’s telecommunications companies, foreign businesses/investors could explore the steadily growing opportunities in Sri Lanka’s ICT and digital infrastructure development sectors.

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Article Code : VBS/AT/23022022/Z_7

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