Dialog consolidates performance with strong 3rd quarter

Dialog Axiata said yesterday it has consolidated its performance in FY12 with a strong third quarter.It said the Group recorded strong revenue growth across Mobile, International, Digital Pay Television, Tele-infrastructure and Fixed line businesses to record a consolidated revenue of Rs. 41.5 b for the nine months ending 30 September 2012, demonstrating a significant growth of 24% YoY.
Group revenue for Q3 2012 was recorded at Rs. 14.5 b, reflecting growth of 3% QoQ. Group EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) for the first nine months of 2012 was recorded at Rs. 14.2 b, a significant increase of 21% relative to the corresponding period in 2011.
Group EBITDA margin for the nine months ended 30 September 2012 declined marginally by one percentage point on a YoY basis to 34%. Group EBITDA for Q3 2012 was recorded at Rs. 4.9 b up 5% QoQ. The Group EBITDA margin improved by one percentage point QoQ to reach 34%.
Non-operational performance below EBITDA for the first nine months is characterised by noncash translational foreign exchange losses amounting to Rs. 2.5 b, and a one-off write back of the company’s deferred tax provision of positive Rs. 2.3 b.

Sri Lanka Dialog Axiata 'AAA(lka)' rating confirmed

Fitch Ratings has confirmed an 'AAA(lka)' rating with a stable outlook citing support from its Malaysia-based parent and said its stand alone credit profile had improved to 'AA 'AA+(lka)' from 'AA(lka)'.

"Dialog's standalone credit profile is strong, and has improved between 2010 and 2012, helped by a benign competitive environment and improving usage across most service segments," Fitch said."The agency expects Dialog's standalone profile to continue to improve over the medium term, driven by the company's ability to fund its capex from strong operating cash flows."

Fitch said Dialog foreign and local currency cashflows were strong enough to cover upcoming repayments.