Leading mobile telecom company Dialog Axiata Group capital expenditure in the first half of the year had nearly doubled to Rs. 5.5 billion from Rs. 2.9 billion in the corresponding period of last year.
The Group’s capital expenditure was directed in the main towards strategic investments in High Speed Mobile Broadband and Optical Fibre Network (OFN) expansion projects and towards providing unparalleled data speeds and connectivity, further consolidating the company’s coverage and quality leadership position.
Bulk of the Rs. 5.5 billion capital expenditure had gone in to Dialog’s mobile business (Rs. 4.3 billion) whilst broadband had seen Rs. 1 billion and Rs. 167 million for television operations. Dialog’s network infrastructure surpassed the dual milestones of 2000 GSM and 1000 3G base stations during 1H 2011.
Dialog last week announced strong first half results which reflected it was consolidating the growth momentum.
The Group recorded a strong growth in revenue to reach Rs 11.1billion in Q2 2011 and Rs 22.0 billion for 1H 2011 respectively, an increase of 1% QoQ and 9% Year-on-Year. Group profitability was founded on a healthy momentum in EBITDA growth with Q2 2011 EBITDA being recorded at Rs 3.8 billion, an increase of 7% QoQ. Group EBITDA for 1H 2011 was posted at Rs. 7.3billion up 3% compared to the corresponding period in 2010. Group Net profit for Q2 2011 was posted at Rs. 1.4 billion, up 19% QoQ.
Net Profit for 1H 2011 was recorded at Rs. 2.5 billion up 22% Year-on-Year. Bolstered by a circa 7 million mobile subscriber base, EBITDA at company level increased by 7% QoQ to reach Rs 3.5 billion in Q2 2011. Company EBITDA for 1H 2011 however showed contraction by 4% Year on Year, due in the main to an 18% increase in operating costs.
Dialog Television (DTV) continued its positive performance trajectory recording revenue growth of 11% to reach Rs 1.1billion in 1H 2011. During the same period DTV EBITDA grew to Rs. 259 million, an improvement of 382% Year on Year. DTH Pay Television subscribers increased by 16% relative to Q2 2010, reaching a total of 184,000.
Dialog Broadband Networks encompassing Dialog’s Fixed Telecommunications Business continued to consolidate performance trends of the previous quarters, to record its fifth successive quarter of positive EBITDA in Q2 2011 to be recorded at Rs. 158 million, a 9% increase QoQ. EBITDA for 1H 2011 was recorded at Rs. 303 million compared to a negative EBITDA of Rs. 10 million in the corresponding period in 2010. DBN however remained PAT negative in Q2 2011 on the backdrop of the accelerated amortisation of its CDMA and WiMAX networks.
The Group continued to record positive Free Cash Flows (FCF) for the sixth consecutive quarter, with Q2 2011 FCF being recorded at Rs. 0.8 billion. In line with the generation of healthy free cash flow, the Dialog Group continued to maintain a structurally strong balance sheet with the Group’s Net Debt to EBITDA ratio improving from 1.7x as at 30 June 2010 to 1.3x at the end of Q2 2011
source - www.ft.lk
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