Annual Report 2012 - Dialog

Annual Report 2012 l Dialog Axiata PLC l 39
Dividends
Dialog’s dividend policy seeks to ensure a dividend payout which is derived based on deleveraging requirements and
free cash flows generated for the year, thus assisting in the creation of sustainable shareholder value in the medium and
long term.
The Board has resolved to propose for consideration by the shareholders of the Company, a cash dividend to ordinary
shareholders of thirty three cents (Rs.0.33) for the FY 2012. This translates to a dividend payout amounting to 45% of
Group PAT.
The total dividend proposed in FY 2012 is Rs 2.69Bn compared to Rs 2.04Bn declared and paid out for the FY 2011,
representing an increase of 32%.
Total shareholder returns
The Total Shareholder Returns (TSR) of the share was 9.6% in 2012 as a result of the 6.4% increase in the share price
and the dividend per share of Rs. 0.25 paid during the year. The Market TSR (based on ASPI) was negative 4.4% in
2012, while TSR based on MPI increased by 0.1%.
Earnings per share
The diluted earnings per share (EPS) for the year was Rs. 0.75 compared to the EPS of Rs. 0.61 recorded in FY 2011
an increase of 23% YoY. EPS is calculated by dividing the net profit attributable to shareholders by the weighted average
number of ordinary shares in issue during the year and excluding ordinary shares held by the Employee Share Option
Trust.
Price Earnings Ratio
DIAL share was trading at 11.1 times earnings as at 31 December 2012 compared to 12.8 times as at 31 December
2011 due to the EPS growing at a higher rate compared to the share price. Consequently, DIAL share was trading at a
lower earnings multiple to the market, which was recorded at 15.9 times as at 31 December 2012.
Table 2: Trading Multiples
2012 2011 2010
Market cap (Rs. Bn) 67.6 63.5 96
Market value added (Rs. Bn) 4 (32) 37
Enterprise value (Rs. Bn) 83 76 116
EV/EBITDA (X) 4.5 4.6 7.7
Diluted EPS (Rs.) 0.8 0.6 0.6
PER (X) 11.1 12.8 20.0
Price to book (X) 1.8 1.9 3.2
Dividend yield (%) 4.0 3.2 1.7
Dividend payout ratio (%) 45 39 34