Dialog Axiata PLC announced its consolidated financial results for the three months ended 31st March 2017. Financial results included those of Dialog Axiata PLC (the ‘Company’) and of the Dialog Axiata Group (the ‘Group’).

The Group continued its growth momentum across Mobile, Tele-infrastructure and Fixed Line businesses to record a consolidated Revenue of Rs22.2Bn for Q1 2017, demonstrating a growth of 5% Year-on-Year (‘YoY’). However, the first Quarter Revenue contracted 3% relative to Q4 2016 as consumer spending was restrained by increased consumption taxes on communication services spanning Mobile, Fixed, Broadband and Pay Television. Group EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) for Q1 2017 grew 3% YoY to reach Rs7.2Bn whilst Group EBITDA contracted 3% Quarter on Quarter (‘QoQ’) on the back of drop in Revenue. The Group EBITDA margin for the Quarter was recorded at 32.6%.

The Group NPAT (Net Profit after Tax) declined 42% YoY, impacted by increase in depreciation, net finance cost and forex losses while NPAT demonstrated a growth of 24% QoQ to be recorded at Rs1.5Bn driven by lower non-cash translational forex losses as the Sri Lankan Rupee depreciated against the United States Dollar by 1.5% in Q1 2017 compared to 2.2% during Q4 of 2016.

The Dialog Group continued to be a significant contributor to state revenues, remitting a total of Rs10.5Bn to the Government of Sri Lanka (GoSL) during Q1 2017 representing an increase of 28% YoY. Total remittances included direct taxes and levies (Rs3.6Bn) as well as consumption taxes collected on behalf of the GoSL (Rs6.9Bn).