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Dialog consolidates YTD performance with a stable Q3



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:

CSE direct weblink:

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Unlimited music streaming platform in Sri Lanka



SLT-Mobitel, the nation’s ICT and Telecommunications Service Provider recently partnered with Spotify, to mark their launch in Sri Lanka. Spotify is a paid premium music streaming app which allows subscribers to listen to music to their hearts content. Both, SLT-Mobitel Post-Paid and Pre-Paid customers will now be able to enjoy Spotify by activating a monthly recurring subscription or one-time subscription plan and access unlimited music streaming and downloading facilities.

The subscription charges will get added to the user’s customary billing, where payment will be deducted in real time. Starting from the payment date, the user will be able to access Spotify and download their favourite songs, for the next 30 days. Users who sign up for their first monthly subscription will receive an additional one month, courtesy of Spotify. The one-month subscription plan is not applicable with one-time subscription plans. SLT-Mobitel data rates, depending on the user’s respective broadband charges, will apply.

Spotify also has some exciting features that will provide SLT-Mobitel customers with the opportunity to listen to ad-free music, access millions of uninterrupted music under one platform, play any song they like, anywhere they go, and also be able to enjoy their music offline.

SLT-Mobitel customers can select their preferred premium package under four categories; Individual, Duo, Family, Student. Each category has recurring and non-recurring plans. After one month of free streaming, the package will activate once the offer period terminates. While both, the Individual and Student premiums are limited to one account user, the Duo package offers two accounts and the Family premium is accessible through six accounts. To view Spotify plans, users can log on to



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Sri Lanka using ‘sovereign power’ over economy: CB Governor



by Sanath Nanayakkare

Anyone conversant with the elements of a political economy would know that Sri Lanka is using its ‘sovereign power’ to manage the different dynamics of the economy in a sustainable manner, Professor W. D Lakshman Governor of the Central Bank said on Wednesday.

“Some critics are saying that we adopt a so-called modern monetary theory. That’s not the case. In fact, Sri Lanka is using its sovereign power in a number of economic aspects to honour its external debt repayment commitments as well as to reduce its debt burden in the medium term as well as achieve resilient growth in the medium to long term, he said.

“We make policy decisions to boost our gross foreign reserves, meet our external debt servicing, to facilitate monetary expansion, to boost our GDP growth, to strengthen our current account balance and manage our domestic and external economic variables in a sustainable manner. This is not a modern monetary theory. This is an age-old tool used by central banks around the world when the circumstances demand it, he said.

“Certain trade-offs will be necessary when dealing with an economy which has a big fiscal gap to bridge. There are efforts to push Sri Lanka towards the IMF again which would in turn have influence on our policymaking. We have taken policy measures to stabilize the economy and we have adequate reserve levels to meet our debt repayments. Meanwhile, we are in negotiations with overseas central banks and multilateral agencies to further boost our reserve level and it would materialise within a matter of weeks,” he noted.

“One of the tools the Central Bank has introduced is in respect of repatriation of export proceeds into Sri Lanka and conversion of such proceeds into Sri Lankan rupees in order to strengthen the foreign exchange situation of the country,” he said.

The Governor made these remarks while delivering the keynote speech at a webinar organised by the Veemansa Initiative led by its Managing Director Luxman Siriwardene – the former Executive Director of Pathfinder Foundation.

The webinar revolved round the topic ‘External debt situation in Sri Lanka: Are we heading for a resolution or crisis?’

Professor Sirimal Abeyratne, Prof. Sumanasiri Liyanage, Dr. Nishan de Mel and Dr. Ravi Liyanage were the other speakers on the panel.

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CSE on the rebound; indices close positive



By Hiran H.Senewiratne 

CSE produced signs of a rebound yesterday with both indices closing positive, though turnover remained low. Central Bank Governor W.D Lakshman’s recent statement on managing foreign reserves gave some boost to the market yesterday, stock market analysts said.

 The index experienced a zigzag movement within the early hours of trading; thereafter, it recorded a slight up-trend as it reached its intraday high of 7,439. Later, the market witnessed a down-trend at mid-day, followed by a sideways movement and closed at 7,372, gaining 43 points during the month of February, market sources said. 

It is said the banking sector dominated turnover with a contribution of considerable  parcel trades in Sampath Bank, Commercial Bank  and HNB.

Further, the Commercial Bank’s impressive quarterly results during the recent turbulent period also built investor  confidence. Commercial Bank was able to register a18 percent net interest income when other banks were reporting a decline. Its share price increased by Rs. 3 or 3.5 percent. On the previous day, its shares started trading at Rs. 85 and at the end of the day they moved up to Rs. 88. Due to the positive growth results, the bank announced a Rs. 4.40 dividend per share, plus a Rs. 2 script divergent for every share.

Further,  Sampath Bank shares also appreciated in both crossing and retail. In crossings its shares appreciated by Rs. 1.At the end of the day they moved up to Rs. 154.50. In the retail market, its shares moved up by Rs. 2 or 1.3 percent. Previously, its shares fetched Rs. 154 and at the end of yesterday they moved up to Rs. 156.  

Amid those developments, both indices moved upwards. The All Share Price Index went up by 104.48 points and S and P SL20 rose by 67.78 points. Turnover stood at Rs. 3 billion with four crossings. Those crossings were reported in Sampath Bank, where 3.9 million shares crossed for Rs. 602.2 million, its share price being Rs. 154.50, HNB 375,000 shares crossed for Rs. 39.4 million, its shares traded at Rs. 105, Pan Asia Power 9.5 million shares crossed for Rs. 33.2 million, its shares traded at Rs. 3.50 and Access Engineering 1.2 million shares crossed for Rs. 28.2 million; its shares traded at Rs. 24.

In the retail market top five companies that mainly contributed to the turnover were, Expolanka Rs. 450 million (10 million shares traded), JKH Rs. 205 million (1.3 million shares traded), Browns Investments Rs. 199 million (34.9 million shares traded), Sampath Bank Rs. 191 million (1.2 million shares traded) and Dipped Products Rs. 137.7 million (2.8 million shares traded). During the day 101 million share volumes changed hands in 18046 transactions. 

During the day, Expolanka, the biggest contributor to the turnover, saw its share price appreciating by Rs. 6.20 or 15 percent. Its share price quoted on the previous day was Rs. 41 and at the end of trading yesterday it moved up to Rs. 47.

Sri Lanka’s rupee quoted wider at 193.50/195.50 levels to the US dollar in the spot next market on Thursday while bond yields remained unchanged, dealers said. The rupee last closed in the spot market at 194.50/195.00 to the dollar on Wednesday.

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