Annual Report 2012 - Dialog

Group NPAT
Rs. Mn +23%
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
4,755
10
4,888
11
6,021
12
Annual Report 2012 l Dialog Axiata PLC l 15
Group Net Profit after Tax (NPAT) for FY 2012 was recorded at Rs. 6.02Bn, up by 23% compared to FY 2011 with a
NPAT margin of 11%. Growth in profitability was achieved on the backdrop of non-cash translational foreign exchange
losses amounting to Rs. 2.18Bn, and a one-off write back of the company’s deferred tax provision of positive
Rs. 2.28Bn.
Strong Group NPAT performance amidst high operating cost and adverse
macro environment
DTV remained NPAT positive while DBN’s profitability improved significantly due
to synergies achieved through Suntel amalgamation
The depreciation of the SLR relative to the USD by 11.8% YoY resulted in the provision of a non-cash translational
foreign exchange loss arising primarily from the USD denominated outstanding loans. The deferred tax write back was
effected subsequent to the Company opting for a 2% post-tax holiday revenue based tax with effect from 2013, in line
with the terms of its Flagship Investor Agreement with the Board of Investment of Sri Lanka.
Group NPAT post normalisation for one-off gains/charges (consisting of the non-cash foreign exchange loss of
Rs. 2.18Bn, deferred taxation reversal of Rs. 2.28Bn and costs related to the Suntel acquisition amounting to
Rs. 343Mn), was recorded at Rs. 6.26Bn for FY 2012, a significant growth in normalized NPAT performance of 29%
compared to FY 2011.
In 2012 DTV continued its growth momentum in terms of revenue and EBITDA however NPAT decreased by 57% YoY
to record at Rs. 11Mn due to the recording of an exceptional impairment charge arising from the ongoing upgrade of
it’s digital satellite broadcasting network from MPEG2 to MPEG4 and High Definition (HD) technologies.
DBN remained dilutive to the Group at NPAT level, but registered significant improvements in revenue and operational
performance on the back of strong revenue and synergies achieved through acquisition, merger and operational
consolidation of Suntel Limited. The acquisition of 100% of the shares in Suntel by DBN was completed on the 21st of
March 2012. Accordingly DBN registered an 87% decrease in Net Loss YoY, with NPAT for FY 2012 being recorded at
negative Rs. 120Mn relative to negative Rs. 945Mn in FY 2011.
Group Capital expenditure for FY 2012 amounted to Rs. 17.41Bn. Capital expenditure was directed in the main towards
High Speed Mobile Broadband and Optical Fibre Network (OFN) expansion projects and towards providing unparalleled
data speeds and connectivity, in addition to the aggressive expansion of its Mobile Telephony services to meet growth
in subscriber demand across all provinces of the country, further consolidating the Company’s leadership position at the
helm of Sri Lanka’s ICT sector as the country’s premier connectivity provider.