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Dialog consolidates YTD performance with a stable Q3

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Dialog Axiata PLC announced, Wednesday its consolidated financial results for the nine months ended 30th September 2020. Financial results included those of Dialog Axiata PLC (the “Company”) and of the Dialog Axiata Group (the “Group”).

The Group concluded Q3 2020 with stable performance across Mobile, Fixed Line and International businesses despite multiple challenges stemming from the Covid 19 pandemic. Group Revenue recorded a growth of 5% on a Year-on-Year (“YoY”) basis to reach Rs30.5Bn for Q3 2020 mainly due to the recovery in Mobile Revenue. Group Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) reached Rs13.6Bn for Q3 2020 up 14% YoY driven by Revenue performance and diligent cost control initiatives. Group Net Profit After Tax (“NPAT”) reached Rs4.8Bn to record growth >100% YoY for Q3 2020 due to EBITDA performance and forex gain of Rs.188Mn relative to the forex loss of Rs1.0Bn in Q3 2019.

On a Year-to-Date (“YTD”) basis the Group performance remained moderate owing to free offers and challenges associated with Covid-19 dampening the performance in Q2 2020. The YTD Revenue impact from Covid-19 is estimated to be Rs4Bn led by Roaming, Enterprise, Television and Retail Mobile segments.

The Dialog Group recorded a consolidated revenue of Rs87.9Bn for the nine months ended 30th September 2020, demonstrating a growth of 1% YTD. On the back of cost control initiatives, Group EBITDA grew 4% YTD to reach Rs36.5Bn. The Group EBITDA Margin was accordingly recorded at 41.5% for the nine months ended 30th September 2020. Underpinned by stable EBITDA performance Group NPAT demonstrated a growth of 3% YTD to record Rs8.6Bn for the nine months ended 30th September 2020.

Dialog Group continued to be a significant contributor to state revenues, remitting a total of Rs13.8Bn to the government of Sri Lanka (“GoSL”) during the nine months ended 30th September 2020. Total Public remittances included Direct Taxes and Levies amounting to Rs4.1Bn and Rs9.7Bn in Consumption Taxes collected on behalf of the GoSL.

Group capital investment for the first nine months of 2020 was recorded at Rs12.0Bn representing a capex to revenue ratio of 14%. Capital expenditure was directed in the main towards continued investments in transforming Dialog into a digital telco, by digitising all spheres of the organisation and to further strengthen the Group’s leadership in Sri Lanka’s mobile and home Broadband sectors. Group Operating Free Cash Flow (“OFCF”) has recorded at Rs21.5Bn for the first nine months of 2020 up from Rs17.6Bn recorded for the corresponding period in 2019. Consequently, cash balance increased by Rs8.4Bn as compared to year end 2019 to record at Rs13.3Bn by end September 2020. Dialog Group continued to exhibit healthy and low geared balance sheet as the Net Debt to EBITDA ratio remained at 0.53 times as at 30th September 2020.

At an entity level, Dialog Axiata PLC (the “Company”) continued to contribute a major share of Group Revenue (69%) and Group EBITDA (75%). Company revenue was record at Rs21.1Bn for Q3 2020 and Rs60.6Bn for the first nine months of 2020 up 3% YoY albeit declining 2% YTD, mainly due to the Covid-19 related core Revenue slowdown.

Company EBITDA was recorded at Rs10.2Bn for Q3 2020 up 12% YoY while it reached Rs27.3Bn for the first nine months of 2020 representing an increase of 2% YTD. Downstream of EBITDA performance the Company NPAT was recorded at Rs4.6Bn for Q3 2020 and Rs9.0Bn for first nine months of 2020, increasing 5% YTD.

Dialog Television (“DTV”), continued its leadership position in the Digital Pay Television space with a subscriber growth of 11% YoY by end Q3 2020. DTV Revenue declined 3% YoY to reach Rs2.2Bn for Q3 2020 amid continued consumer wallet pressure. On a YTD basis revenue was down 1% to record Rs6.5Bn for nine months ended 30th September 2020, due to Covid-19 associated free services and slowdown in Q2 2020. Downstream of Revenue performance, DTV EBITDA recorded a decline of 9% YTD to reach Rs1.7Bn for the first nine months of 2020. Accordingly, DTV Net Loss increased to Rs845Mn for the nine months ended 30th September 2020 relative to a Net Loss of Rs335Mn for the corresponding period in 2019.

Dialog Broadband Networks (“DBN”) featuring the Group’s Fixed Telecommunications, Broadband and International Businesses recorded revenue of Rs8.0Bn for Q3 2020 up 10% YoY while the Revenue was recorded at Rs23.3Bn for the nine months ended 30th September 2020 up 13% YTD. DBN EBITDA recorded a growth of 11% YTD to reach Rs7.6Bn for the nine months ended 30th September 2020. NPAT reached to Rs626Mn up 8% YTD for the first nine months of 2020.

More details are available at the following links:

Dialog Axiata PLC direct weblink: https://www.dialog.lk/quarterly-reports

CSE direct weblink: https://www.cse.lk/home/company-info/DIAL.N0000/financial



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President discusses enhancing revenue and efficiency with Sri Lanka Customs and Inland Revenue officials

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President Anura Kumara Dissanayake held a key meeting with senior officials from both the Sri Lanka Customs Department and the Inland Revenue Department at the Presidential Secretariat today (09). The discussions centered on strategies to enhance revenue generation and improve operational efficiency within both departments, in line with the government’s broader economic mandate.

During the meeting, officials from both departments presented the challenges they face in managing revenue and tackling tax evasion. They stressed the importance of strengthening coordination between the Inland Revenue Department (IRD) and Customs to effectively combat these issues. It was highlighted that better collaboration would ensure more robust enforcement of tax laws and prevent tax leakage, further boosting the country’s revenue collection.

Representing the Sri Lanka Customs Department were  P B S C Nonis, Director General of Customs; Mrs. H W S P Karunaratne, Additional Director General of Customs; . C S A Chandrasekara, Additional Director General of Customs;  W S I Silva, Additional Director General of Customs;  S P Arukgoda, Additional Director General of Customs; J M M G Wijeratna Bandara, Additional Director General of Customs;  A. W. L. C. Weerakoon, Senior Deputy Director and  M R G A B Muthukuda, Chief Financial Officer, among other officials.

From the Inland Revenue Department, Mrs. W S Chandrasekara, Commissioner General;  B K S Shanta, Deputy Commissioner General; Mrs. J A D D B K Siriwardena, Deputy Commissioner General; Mrs. J D Ranasinghe, Deputy Commissioner General; D M N S B Dissanayake, Deputy Commissioner General;  H H S Samantha Kumara; and Ms. T M S Thennakone, Senior Commissioner, participated in the discussions.

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First multi-stakeholder initiative on Child Rights in Tourism launched in Sri Lanka

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Pictured from left: Buddhini Withana, Senior Technical Advisor Child Protection and Child Rights in Business, Save the Children; Irstel Janssen, Director, Sustainable Sri Lanka; Mayuran, Director, Centre for Children’s Happiness during a panel discussion at the Seal launch event.

On World Tourism Day, representatives from leading hotel businesses, tourism associations, NGOs, and government departments convened in Colombo to officially launch the Mother and Child-Friendly Seal for Responsible Business in Tourism. This pioneering initiative, the first of its kind in Sri Lanka, brings together key actors from the tourism supply chain to enhance the well-being of children and families connected to the sector through long-term, continuous actions.

The launch comes on the heels of a new study by The Centre for Child Rights and Business in partnership with Save the Children, highlighting serious child rights risks in Sri Lanka’s tourism industry. The study identifies key challenges such as sexual exploitation, child labour, and educational disruptions, driven by factors like inadequate regulation of guesthouses and homestays, the absence of child safeguarding measures among tourism providers, and a lack of formalised pathways to decent work for youth.

This event marks a significant milestone in the expansion of the Mother and Child-Friendly Seal, which has already seen success in Sri Lanka’s tea sector, with seven major plantation companies and exporters committing to initiatives that improve the welfare of tea communities. The extension of this Seal to the tourism sector is timely, as Sri Lanka prepares to welcome over 3 million tourists by 2025, positioning the industry to align with global human rights due diligence regulations and the growing demand for ethical tourism.

At the launch, stakeholders engaged in practical discussions about the child rights risks facing the tourism sector and explored collective solutions. Issues such as the outmigration of mothers and its impact on children were brought up, with participants offering valuable insights into areas for Seal members to address.

The panel discussed the critical issues that women and children face in the travel and tourism industries and some of the priorities and opportunities that the industry could address.

“Young children often do not realise they are being exploited. Providing a safe and respectful environment for them should be our primary goal. We must consider the risk factors in these scenarios, as there is currently no data to support issues in tourism, such as trafficking and exploitation. While problems like festival tourism have existed, they have increased since COVID-19 and have been exacerbated by the economic crisis,” said Buddhini Withana, Senior Technical Advisor Child Protection and Child Rights in Business, Save the Children.

Irstel Janssen, Director, Sustainable Sri Lanka added: “10% of women are working in this sector due to social stigma, safety concerns, and harassment. The economic crisis has forced women to step into this industry, but they are not employed in roles that match the nature of the work. The Seal initiative is an important step to address these issues and encourage more women’s participation.”

One of the highlights of the event was a keynote speech delivered by Cinnamon Hotels, where they underscored their commitment to protecting women and children. The company outlined key initiatives, including robust policies to support the female workforce, a zero-tolerance stance on misconduct, and a comprehensive sexual harassment policy. Cinnamon Hotels also conducts awareness sessions to educate staff about these policies, provides parental leave, and offers 100 days of paternity leave. Additionally, the company places a strong emphasis on mental health benefits for all employees. Their efforts served as an inspiration for other accommodation providers, offering practical steps to strengthen child safeguarding and empower women in the tourism sector.

For more information about the Mother and Child-Friendly Seal for Responsible Business, visit srilanka-motherandchildseal.org or contact info.SL@childrights-business.org.

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‘Brandix – A Great Place to Work for Women’ 

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Sri Lanka’s premier apparel solutions provider, Brandix, was recognized as one of Sri Lanka’s Most Outstanding Women-Friendly Workplaces at the Satyn Magazine Women Friendly Workplace Awards (WFWA) 2024. Initiated by CIMA Asia, the American Institute of Certified Public Accountants (AICPA) and Satyn Magazine, the accolade recognizes and celebrates organizations committed to gender equality and women empowerment. Senior General Manager Human Resources at Brandix, Dinusha Jayamanne, said Brandix is ‘constantly exploring new avenues to create a more inclusive and enriching environment for its female workforce, and the company stands proud of the pioneering initiatives it launched in this sphere.’ The latest award is a testament to the impact of these measures implemented across Brandix facilities in Sri Lanka and the world.

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