Dialog FY 2021 NPAT Rs17.1Bn, Contribution to GoSL Tax Revenue Rs23.2Bn
Dialog Axiata PLC announced its consolidated financial results for the year ended 31 st December 2021. Financial results included those of Dialog Axiata PLC (the “Company”) and of the Dialog Axiata Group (the “Group”).
The Group concluded the Financial Year (“FY”) with positive performance across all business segments viz. Mobile, Fixed, Digital Pay Television, International, Digital Platforms and Tele-infrastructure businesses. The achievement of the financial performance was underpinned by well coordinated delivery of innovative affordable service packs, superior network and customer experience amidst a challenging business atmosphere.
Group consolidated revenue was recorded at Rs141.9Bn for FY 2021 demonstrating a growth of 18% Yearto-Date (“YTD”). Q4 2021 revenue was recorded at Rs37.1Bn up 15% Year-on-Year (“YoY”). 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 Rs58.8Bn for FY 2021 while Group EBITDA was recorded at Rs15.3Bn for Q4 2021, up 7% YoY.
The Group Net Profit After Tax (“NPAT”) recorded at Rs17.1Bn for FY 2021 underpinned by strong EBITDA performance, moderate growth in depreciation and contraction in finance cost, partially offset by forex losses amounting to Rs2.6Bn. Group NPAT reached Rs.4.6Bn 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 11th February 2022, resolved to propose for consideration by the Shareholders of the Company, a dividend to ordinary shareholders amounting to Rs1.24 per share. The said dividend, if approved by shareholders, would translate to a Dividend Yield of 11.4% based on 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 date pertaining to which would be notified in due course.
Dialog Group continued to be a significant contributor to state revenues, remitting a total of Rs23.2Bn to the GoSL during the financial year ended 31st December 2021. Total remittances included Direct Taxes and Levies amounting to Rs8.4Bn and Rs14.8Bn in Consumption Taxes collected on behalf of the GoSL.
The Group capital expenditure for the year ended 31st December 2021 reached Rs31.7Bn, resulting in a Capex to Revenue ratio of 22%. Capital expenditure 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 Rs23.4Bn 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 (the “Company”) continued to contribute a major share of Group Revenue (64%) and Group EBITDA (69%). Company revenue recorded growth of 10% YTD to reach Rs90.9Bn for FY 2021 driven by Data and Voice segments. The Company EBITDA was recorded at Rs40.5Bn for FY 2021 representing an increase of 7% YTD. Company NPAT was recorded at Rs11.2Bn for FY 2021 down 5% YTD.
Dialog Television (“DTV”), continued to consolidate its leadership position in the Digital Pay Television space with subscriber growth continuing unabated to record 8% YoY for the year ended 31st December Accordingly, DTV revenue recorded a strong growth of 22% YTD to reach at Rs10.6Bn for FY 2021. Driven by top line performance and stable exchange rate, DTV EBITDA recorded a growth of 49% YTD to reach Rs3.7Bn for FY 2021. Downstream of the improved performance, DTV’s bottom line turned around to record a positive NPAT of Rs193Mn for FY 2021.
Dialog Broadband Networks (“DBN”) featuring the Group’s Fixed Telecommunications, Broadband and International Businesses recorded revenue of Rs44.8Bn for FY 2021 up 39% YTD. DBN EBITDA recorded a growth of 32% to reach Rs14.6Bn for FY 2021. Accordingly, NPAT was recorded at Rs4.9Bn for FY 2021.