Dialog Axiata profits surge in 1Q as demand for data grows

Dialog Axiata PLC reported a surge in both bottom and top lines during the quarter ended March 31, 2021 (1Q21) as many took to digitally powered devices ranging from smartphones and laptops as the pandemic upended how people work, study, shop, conduct meetings and interact with each other. 

The leader in mobile telephone services reported earnings of 30 cents a share or Rs.2.45 billion for the January-March quarter compared to earnings of Rs.1.49 billion or 18 cents a share in the year earlier quarter, which translates to 64 percent year-on-year (YoY) growth. 

The mobile telecommunications juggernaut with fixed data services as well as pay television service reported revenues of Rs.32.9 billion in the three months through March 2021, up nearly 13 percent YoY. 

The company reported higher profits in the March quarter despite heavier losses booked from translational losses on account of its foreign currency borrowings caused by the steeper depreciation of the rupee. 

The group booked Rs.2.1 billion in net foreign exchange losses in the three months, of which non-cash translational losses amounted to Rs.1.7 billion, up from a total net foreign exchange loss of Rs.1.6 billion in the same three months in 2020. 

The mobile operations of the group, which captures mobile voice services and data, generated revenues of Rs.21.9 billion in the three months compared to Rs.20.2 billion in the corresponding period in 2020. 

Meanwhile, the fixed telephony and broadband operations of the group generated revenues of Rs.8.5 billion compared to Rs.6.8 billion a year ago, reflecting the surge for home broadband since the onset of the pandemic last year.  

This segment’s operating profit rose more than four-fold from Rs.205.7 million to Rs.935.7 million during 12 months. 

Meanwhile, the pay TV operations of the group reported revenues of Rs.2.4 billion compared to Rs.2.2 billion as the subscriber base increased to 1.6 million. But this segment is still making an operating loss of Rs.108.5 million compared to Rs.129.9 million a year earlier.

Dialog’s parent, Axiata Investments (Labuan) Limited in Malaysia holds 83.01 percent stake in the company while the Employees’ Provident Fund has 2.90 percent stake.