Dialog Axiata PLC | Annual Report 2010 D ia lo g A x ia ta P L C | A ...
Dialog Axiata PLC | Annual Report 2010 D ia lo g A x ia ta P L C | A ...
Dialog Axiata PLC | Annual Report 2010 D ia lo g A x ia ta P L C | A ...
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Our Fixed Telephony and Da<strong>ta</strong> Transmission businesses continued to consolidatepositive performance trends resulting in DBN recording its third successive quarter ofpositive EBITDA. DBN EBITDA was recorded at Rs. 285 Mn. in FY <strong>2010</strong>, a significant169% improvement relative to 2009. On the backdrop of the ongoing acceleration ofdeprec<strong>ia</strong>tion per<strong>ta</strong>ining to DBN’s CDMA and Wimax networks, PAT was recorded atnegative Rs. 1.30 Bn. in FY <strong>2010</strong> relative to negative Rs. 2.59 Bn. in 2009.As exemplified in the case of DBN, but equally applicable to DAP (the Company) and DTV,the Group continued to exercise a stringent level of prudence with respect to the treatmentof its fixed assets. The Company has consistently enforced c<strong>lo</strong>se adherence to internationalbest practice with respect to the adoption of deprec<strong>ia</strong>tion policies which are c<strong>lo</strong>selyaligned with techno<strong>lo</strong>gy life cycles.In the Year <strong>2010</strong>, <strong>D<strong>ia</strong><strong>lo</strong>g</strong> supplemented positive gains in profi<strong>ta</strong>bility, with a diligent focuson working capi<strong>ta</strong>l management to yield Group operating cash f<strong>lo</strong>ws of Rs. 14.28 Bn., up32% YoY. Company cash f<strong>lo</strong>ws grew by a similar margin, with operating cash f<strong>lo</strong>ws for<strong>2010</strong> being recorded at Rs. 13.66 Bn., up 11% relative to 2009. The expansion of free cashf<strong>lo</strong>ws was further supported by a prudent and judicious approach to capi<strong>ta</strong>l investments.The Group recorded a positive free cash f<strong>lo</strong>w of Rs. 8.21 Bn. in <strong>2010</strong>, in contrast to thenormalised negative free cash f<strong>lo</strong>w of Rs. 133 Mn. in 2009. Significantly positive free cashf<strong>lo</strong>ws enabled the Group to implement a comprehensive debt restructuring programmeleading to a reduction in financing costs and the enhancement of the Group’s Gross Debt/EBITDA ratio to 1.8x relative to 2.6x in 2009.In <strong>ta</strong>ndem with the strengthening of Group cash f<strong>lo</strong>ws and the restructuring of the GroupBalance Sheet, the ‘National Long-Term Rating’ of <strong>D<strong>ia</strong><strong>lo</strong>g</strong> was upgraded from ‘AA(lka)’ to‘AAA(lka)’, and the Group ‘Out<strong>lo</strong>ok’ modified from ‘Negative’ to ‘S<strong>ta</strong>ble’ by Fitch Ratings,Sri Lanka’s primary credit rating body.Commitment to ExcellenceIn line with our strategic objectives of es<strong>ta</strong>blishing a platform for sus<strong>ta</strong>inable growth andconsolidating our leadership position as Sri Lanka’s premier connectivity provider, weremained singularly committed to ensuring that the <strong>D<strong>ia</strong><strong>lo</strong>g</strong> Rebound was holistic in itsoutcomes. Accordingly, quantum improvement in terms of Cost Leadership and Operatingprofi<strong>ta</strong>bility were supplemented by the achievement of several milestones in terms ofproduct and service leadership.10<strong>D<strong>ia</strong><strong>lo</strong>g</strong> <strong>Ax<strong>ia</strong><strong>ta</strong></strong> <strong>PLC</strong><strong>Annual</strong> <strong>Report</strong> <strong>2010</strong> |Group Chief Executive’s Review of Operations
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