Dialog Axiata returns to black with stronger operating results

Dialog Axiata PLC reported a profit for the three months ending in December, attributed to improved operating results, reduced depreciation, foreign exchange gains, and lower finance costs. These positive outcomes were facilitated by the country’s economic turnaround, characterised by a strengthened rupee, decreased inflation, and lower interest rates.

This is despite the top-line coming below the previous year’s levels at Rs.43.39 billion in the October – December quarter, the company’s fourth fiscal quarter, which was a 14.8 percent decline.
However, the operating profit of the group came in at Rs.6.93 billion for the quarter, turning from a loss of Rs.8.80 billion in the year earlier period.

The group’s earnings before interest, tax, depreciation and amortisation, recorded Rs.17.0 billion.
Despite EBITDA coming in 2 percent lower from the previous quarter, the company said it was a moderation and attributed the better performance to, “cost rescaling and resilience actions taken by the group which helped achieve an EBITDA growth that exceeded revenue growth on both YTD and QoQ basis”.
“Accordingly, EBITDA margin improved 3.8 percentage points to reach 32.8 percent for FY2023”, the company said in a press release.

The company reported earnings of 64 cents a share or Rs.5.27 billion for the quarter, compared to a loss of Rs.1.01 a share or Rs.8.29 billion in the same period last year. For the full year ended December 31, 2023, the company reported earnings of Rs.2.44 a share or Rs.20.12 billion, compared to a loss of Rs.4.06 a share or Rs.33.39 billion in 2022, on revenue of Rs.187.81 billion, up 5.44%. Annual profits were boosted by a Rs.10.2 billion net foreign exchange gain in 2023, compared to a loss of Rs.30.28 billion in 2022, due to an 11% appreciation in the Rupee against the Dollar last year.

The company’s share closed at Rs.9.80 on Friday. It declared a dividend of Rs.1.34 per share, resulting in a payout ratio of 55 percent and a dividend yield of 14.9 percent based on the share price at the end of 2023. 
The group’s mobile operation led revenues and operating profits, with revenue increasing by 5.22 percent to Rs.107.67 billion and operating profit reaching Rs.12.76 billion, compared to a loss of Rs.5.41 billion in 2022.