Dialog Axiata PLC | Annual Report 2010 D ia lo g A x ia ta P L C | A ...

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The Group direct costs grew by 6% while operating costs declined by 48% resulting in aGroup PAT of Rs. 5.05 Bn. for the year 2010.The Group EBITDA (Operating Profit before Depreciation, Amortisation and Impairment)for the year was recorded at Rs. 15.08 Bn., up by a significant 82% YoY. The Group EBITDAmargin improved by 13 percentage points YoY, to reach 36%.The Group delivered strong performance in terms of profitability, recording PAT ofRs. 5.05 Bn. for 2010 a 141% increase YoY.Both subsidiaries remained dilutive to the Group at profit level, but registered significantimprovements in operational performance in the wake of strategic cost rescaling initiativesimplemented across the Fixed Telecommunication and Television businesses of the Group.Negative contributions from DBN (Rs. 1.30 Bn.) and DTV (Rs. 154 Mn.) resulted in the dilutionof Group earnings by a total of Rs. 1.51 Bn. (inclusive of consolidated adjustments), resultingin a Group profit of Rs. 5.05 Bn. for 2010 compared to a loss of Rs. 12.21 Bn. in 2009.22Dialog Axiata PLCAnnual Report 2010 |Business & Financial Review
The following graph depicts the contribution made by the growth in revenues and operationalimprovements towards the turnaround in Group profitability in 2010, relative to 2009.2009 PAT has been adjusted fornon-recurring charges resulting in anormalised PAT of negative Rs. 1.16 Bn.Group Cash FlowsThe Group operating cash flows totalled Rs. 14.28 Bn. for the year 2010, an increase of 32%compared to 2009. The healthy operating cash flow recorded in 2010, has been augmentedby a 30% YoY reduction in capital expenditure to Rs. 6.87 Bn. Drop in capital expenditurewas driven by focused capital investments and the completion of an extensive networkmodernisation exercise carried out in 2009. Accordingly, the Group recorded a positive freecash flow of Rs. 8.21 Bn. for the year 2010, relative to the normalised negative free cashflow of Rs. 133 Mn. in 2009.Group Balance SheetFree cash flows generated were directed towards the repayment of high interest bearinglocal borrowings amounting to Rs. 4.64 Bn. and repayment of USD 10 Mn. against theadvances due to the principle shareholder, Axiata Group.Dialog’s borrowings as at 31st December 2010 comprised Rs. 6.22 Bn. of local currencyand USD 172.5 Mn. of foreign currency debt. Of the local currency borrowings, Rs. 2.5 Bn.is in the form of Redeemable Cumulative Preference Shares, whilst Rs. 3.72 Bn. is due toBusiness & Financial ReviewDialog Axiata PLC| Annual Report 201023
Page 4 and 5: Message from the ChairmanThe Turnar
Page 6 and 7: The Sri Lankan economy has begun to
Page 8 and 9: your company concluded the Financia
Page 10 and 11: The positive dynamics of the Sri La
Page 12 and 13: Our Fixed Telephony and Data Transm
Page 14 and 15: Dialog’s direct contribution to t
Page 16 and 17: Board of DirectorsDatuk Azzat Kamal
Page 18 and 19: Board of Directors (Contd.)Mr. Jaya
Page 20 and 21: Group Senior ManagementPradeep De A
Page 22 and 23: Business & Financial Review2010 - A
Page 26 and 27: Parent Axiata Group. Dialog has a U
Page 28 and 29: The international telecommunication
Page 31 and 32: Finance CostsIn early 2010, Dialog
Page 33 and 34: TaxationDialog has been granted fla
Page 35 and 36: However, DBN remained PAT negative
Page 37 and 38: On the backdrop of revenue and cost
Page 39 and 40: Board Composition and IndependenceT
Page 41 and 42: All committees have written Terms o
Page 43 and 44: Re-electionThe Company’s Articles
Page 45 and 46: The BAC conducts a review of the ef
Page 47: Information which is disseminated t
Page 50 and 51: The BAC was also entrusted with the
Page 52 and 53: Shareholder InformationMarket Infor
Page 54 and 55: DividendsDialog’s dividend policy
Page 56 and 57: The total number of shareholders of
Page 59 and 60: Financial ReportsDialog Axiata PLC
Page 61 and 62: Accounting PoliciesThere were no ch
Page 63 and 64: Mr. Moksevi Rasingh Prelis, who has
Page 65 and 66: Future DevelopmentsIn line with its
Page 67 and 68: Independent Auditor’s ReportTo th
Page 69 and 70: Consolidated Income StatementFor th
Page 71 and 72: Attributable to equity holders of t
Page 73 and 74: Notes to the Consolidated Financial
Page 75 and 76:
(c) Computer SoftwareAcquired compu
Page 77 and 78:
2.8 InvestmentsInvestments are stat
Page 79 and 80:
(c) Short-term Employee BenefitsWag
Page 81 and 82:
(e) Prepaid Card RevenueRevenue fro
Page 83 and 84:
(f) ProvisionsThe Group recognises
Page 85 and 86:
The segment assets and liabilities
Page 87 and 88:
6. Property, Plant and Equipment(a)
Page 89 and 90:
(c) Provision for Capital Inventory
Page 91 and 92:
(b) CompanyLicencesRs. ’000Comput
Page 93 and 94:
The following assumptions were appl
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10. Trade and Other Receivables2010
Page 97 and 98:
The preference shares are redeemabl
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15. Trade and Other Payables2010Rs.
Page 101 and 102:
Axiata Investments (Labuan) Ltd. (f
Page 103 and 104:
The gratuity liability of the Compa
Page 105 and 106:
22. Employee Benefit Expense2010Rs.
Page 107 and 108:
Tax losses available for carry forw
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27. Cash Generated from OperationsR
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29. Contingencies(a) Pending litiga
Page 113 and 114:
31. Related Party Transactions(a) T
Page 115 and 116:
(b) The Company is controlled by Ax
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2010Rs. ’0002009Rs. ’000iii) Te
Page 119 and 120:
(f) Outstanding receivable balances
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33. Events after the Balance Sheet
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Income StatementFor Information Pur
Page 125 and 126:
Five Year SummaryGROUP31st December
Page 127 and 128:
NotesDialog Axiata PLC| Annual Repo
Page 129 and 130:
Form of ProxyI/We (name) ..........
Page 131 and 132:
Corporate InformationNAME OF COMPAN
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