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

However, DBN remained PAT negative in 2010, following the ongoing accelerateddepreciation of CDMA and WiMAX networks. DBN recorded PAT of negative Rs. 1.30 Bn.in 2010, an improvement of 50% compared to 2009. DBN’s performance also includes aone–off provision of Rs. 100 Mn. on account of VAT recovery in light of the emergent VATexempt environment in the Telecommunications Sector.TaxationDuring 2007, DBN entered into an investment agreement with the BOI, encapsulating aUSD 75 Mn. investment in telecommunications infrastructure, including but not limited to thedevelopment of a fibre optic network and the expansion of its WiMAX and CDMA networks.Within the framework of the terms of the said agreement, DBN was awarded an extensionto its incumbent tax holiday. Accordingly, the Company is deemed exempt from income taxup to five years (ending March 2011) from the expiry of the incumbent tax holiday. Uponexpiry of the exemption period, the Company will be subject to a corporate tax as per theInland Revenue Act.Dialog Television –Business Overview & Financial ReviewDTV is the single largest Direct-To-Home (DTH) digital television service provider inSri Lanka. DTV delivered an unprecedented turnaround in the year 2010, recording apositive EBITDA supported by a significant number of acquisitions of new subscribers. Withconsistent innovative sales and marketing programmes carried out throughout the year, thetotal active subscriber base grew by 13% YoY, connecting 168,000 Sri Lankan homes byyear end.Business & Financial ReviewDialog Axiata PLC| Annual Report 201033