Dialog returns to positive NPAT in FY 2023

The consolidated financial results including Dialog Axiata PLC (Company) and of the Dialog Axiata Group (Group) for the year ended December 31, 2023 saw a positive top line performance across all business segments, namely, Mobile, Fixed, Digital Pay Television, International, Digital Platforms and Tele Infrastructure businesses. 

Group consolidated revenue was recorded at Rs. 187.8 Bn for FY 2023 demonstrating a growth of 5% Year-to-Date (“YTD”). Group Revenue for Q4 2023 was recorded at Rs. 43.4 Bn down 7% Quarter-on-Quarter (QoQ). Downstream of top line performance Group Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) recorded strong double-digit growth of 19% YTD to reach Rs. 61.5 Bn for FY 2023 whilst Group EBITDA decline moderated to 2% QoQ to reach Rs.17 Bn for Q4 2023.

The positive outcome from Cost Rescaling and resilience actions taken by the Group helped achieve an EBITDA growth that exceeded Revenue growth on both YTD and QoQ basis. Accordingly, EBITDA margin improved 3.8pp to reach 32.8% for FY2023.

The Group Net Profit After Tax (NPAT) turned positive for the year to cross Rs. 20 Bn mark for FY 2023 up >+100% underpinned by strong EBITDA performance, lower depreciation, forex gains and lower finance cost. Group NPAT for Q4 2023 was recorded at Rs. 5.3 Bn, up 72% QoQ. The YTD NPAT performance was strongly supported by a forex gain of Rs. 10.2 Bn for FY 2023 as the Rupee appreciated 11.5% against the United States Dollar. Normalized for the forex gain, the Group NPAT was recorded at Rs. 9.9 Bn for FY 2023, up >+100% YTD.

Board of Directors of Dialog Axiata PLC also resolved to propose for consideration by the Shareholders of the Company, a dividend to ordinary shareholders amounting to Rs. 1.34 per share. The Group capital expenditure for the year ended December 31, 2023 reached Rs. 25.5 Bn, resulting in a Capex to Revenue ratio of 14%.

At an entity level, Dialog Axiata PLC continued to contribute a major share of Group Revenue (55%) and Group EBITDA (62%). Company revenue was recorded at Rs. 102.9Bn for FY 2023 up 1% YTD driven mainly by Data and Voice segments. On a QoQ basis revenue grew 0.5% to record at Rs. 26.3Bn for Q4 2023.

The Company profitability improved on YTD basis owing to cost efficiencies as EBTIDA reached Rs. 38.4 Bn up 8% YTD. EBITDA remained stable on QoQ basis to reach Rs. 10.6 Bn for Q4 2023. Company NPAT, with the support of forex gains of Rs. 10.0 Bn, was recorded at Rs. 12.0 Bn for FY 2023 up >+100% YTD. NPAT reached Rs. 2.3 Bn for Q4 2023 up >+100% QoQ.

DTV revenue recorded a strong growth of 3% YTD to reach Rs. 12.40Bn for FY 2023. Supported by favorable forex movement during the year, DTV EBITDA recorded growth of 86% YTD to reach Rs2.9Bn for FY 2023. Consequently, DTV NPAT turned positive to record at Rs0.6Bn for FY 2023.

Dialog Broadband Networks (“DBN”) featuring the Group’s Fixed Telecommunications, Broadband and International Businesses recorded revenue of Rs. 73.6Bn for FY 2023 up 7% YTD resulting from increase in International Wholesale and Fixed Broadband Revenue.

DBN EBITDA recorded a growth of 19% YTD to reach Rs17.7Bn for FY 2023. Accordingly, NPAT was recorded at Rs5.8Bn for FY 2023 up 75% YTD.

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