Dialog Axiata PLC, Sri Lanka’s largest foreign direct investor with investments totaling USD 1.63 billion, has seen a slight downturn in profitability in 2013 with the group profit after-tax down to Rs.5.2 billion from Rs.6.03 billion the previous year and the earnings per share down to 65 cents from 76 cents a year earlier.
This is on account of the company’s tax holiday ending and provision having to be made for the payment of Rs. 1.1 billion income tax.
However, the company’s Chairman, Mr. Datuk Azzat Kamaludin has told shareholders in the annual report that the company’s financial and operational performances "have exceeded expectations despite the intense competition in the telecommunications sector."
He said that Dialog’s services offered remains the number one choice of the Sri Lankan consumers in terms of quality, expansive functionality and affordability.
Kamaludin reported 12% revenue growth to Rs.63.3 billion during the year ending December 31, 2013 with the pre-tax profit up 56% from the previous year.
The company’s tax holiday granted by the BOI for being a flagship infrastructure investor has ended and Dialog has provided for an income tax payment impacting its bottom line.
Dialog has paid the government Rs.6.9 billion in terms of fixed levies and operating taxes and also collected further Rs.10.1 billion indirect taxes on behalf of the government.
The Board has recommended a dividend of 29 cents per share to shareholders against the previous year’s 33 cents representing 45% of disbursable income which was on par with the previous year’s payout ratio.
Kamaludin said that the company touches the lives of nearly half the country’s population, homes and businesses serving over 8.7 million mobile customers, over 0.3 million digital television users and nearly 0.5 million fixed line consumers.
"In 2013 our continuous investments in next generation technologies and network infrastructures paid off. Your company has the distinction of being the first country and service provider to commercially launch 4G (4th generation) mobile services in the South Asian region, driving the digital age of mobile telephony services," the chairman said.
"Your company also continued to lead the way as the largest foreign direct investor in Sri Lanka. The Dialog group has recorded a cumulative investment of over 1.63 billion USD since inception."
He described the company’s contribution to Sri Lanka’s infrastructure as "consistent and monumental" testifying their confidence in the economy, the government and the people of Sri Lanka.
Dr. Hans Wijayasuriya, Director/Group CEO said that the company provided direct employment to 3,000 people and continued to be the largest employer in the mobile telecommunication sector while accounting for over 23% of the telecommunication sector workforce in the country.
He noted that the country was poised on the cusp of accelerated development arising from the rejuvenation of multiple sectors of the economy. They believed that the next generation ICTs and empowering digital services, if deployed inclusively, will collectively form a pivotal driver of the nation’s development.
This is on account of the company’s tax holiday ending and provision having to be made for the payment of Rs. 1.1 billion income tax.
However, the company’s Chairman, Mr. Datuk Azzat Kamaludin has told shareholders in the annual report that the company’s financial and operational performances "have exceeded expectations despite the intense competition in the telecommunications sector."
He said that Dialog’s services offered remains the number one choice of the Sri Lankan consumers in terms of quality, expansive functionality and affordability.
Kamaludin reported 12% revenue growth to Rs.63.3 billion during the year ending December 31, 2013 with the pre-tax profit up 56% from the previous year.
The company’s tax holiday granted by the BOI for being a flagship infrastructure investor has ended and Dialog has provided for an income tax payment impacting its bottom line.
Dialog has paid the government Rs.6.9 billion in terms of fixed levies and operating taxes and also collected further Rs.10.1 billion indirect taxes on behalf of the government.
The Board has recommended a dividend of 29 cents per share to shareholders against the previous year’s 33 cents representing 45% of disbursable income which was on par with the previous year’s payout ratio.
Kamaludin said that the company touches the lives of nearly half the country’s population, homes and businesses serving over 8.7 million mobile customers, over 0.3 million digital television users and nearly 0.5 million fixed line consumers.
"In 2013 our continuous investments in next generation technologies and network infrastructures paid off. Your company has the distinction of being the first country and service provider to commercially launch 4G (4th generation) mobile services in the South Asian region, driving the digital age of mobile telephony services," the chairman said.
"Your company also continued to lead the way as the largest foreign direct investor in Sri Lanka. The Dialog group has recorded a cumulative investment of over 1.63 billion USD since inception."
He described the company’s contribution to Sri Lanka’s infrastructure as "consistent and monumental" testifying their confidence in the economy, the government and the people of Sri Lanka.
Dr. Hans Wijayasuriya, Director/Group CEO said that the company provided direct employment to 3,000 people and continued to be the largest employer in the mobile telecommunication sector while accounting for over 23% of the telecommunication sector workforce in the country.
He noted that the country was poised on the cusp of accelerated development arising from the rejuvenation of multiple sectors of the economy. They believed that the next generation ICTs and empowering digital services, if deployed inclusively, will collectively form a pivotal driver of the nation’s development.
Dialog has a stated capital of Rs.28.1 billion and retained earnings of Rs.13.2 billion in its books. Total assets ran at Rs.103.84 billion and total liabilities at Rs.64.1 billion.
The company’s share closed 2013 at Rs.9 against Rs.8.30 the previous year and net assets per share had grown to Rs.4.88 from Rs.4.57.
The company’s share closed 2013 at Rs.9 against Rs.8.30 the previous year and net assets per share had grown to Rs.4.88 from Rs.4.57.
The directors of the company are: Datuk Azzat Kamaludin (Chairman), Dr. Hans Wijayasuriya (Group Chief Executive), Moksevi Prelis, Mohamed Muhsin, Jayantha Dhanapala, James Maclaurin, Mohd Khairil Abdullah, Darke Mohamed Sani (w.e.f. 8.2.2014 and Mahesh Amalean (w.e.f. 1.5.2014).
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