DIALOG AXIATA PLC
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SECOND QUARTER ENDED
30 JUNE 2024
Page 1
Deloitte Partners
100 Braybrooke Place
Colombo 2
Sri Lanka
Tel: +94 11 771 9700, +94 11 771 9838 Fax: +94 11 230 7237 www.deloitte.com
Report on Review of Condensed Consolidated Interim Financial Information To the Bord of Directors of Dialog Axiata PLC
Introduction
We have reviewed the accompanying condensed interim statement of financial position of Dialog Axiata PLC ("the Company") and condensed consolidated interim financial position of Dialog Axiata PLC and its subsidiaries ("the Group") as at 30 June 2024 , the related condensed statements of comprehensive income of the Company and the Group for the quarter ended and cumulative six - months ended 30 June 2024, the related changes in equity and cash flows of the Company and the Group for the cumulative six - months then ended, and a summary of significant accounting policies and other explanatory notes. Management is responsible for the preparation and fair presentation of this condensed interim financial information in accordance with Sri Lanka Accounting Standard 34 [LKAS34] - Interim Financial Reporting. Our responsibility is to express a conclusion on this condensed interim financial information based on our review.
Scope of Review
We conducted our review in accordance with Sri Lanka Standard on Review Engagements [SLSRE] 2410 - 'Review of Interim Financial Information performed by the Independent Auditor of the Entity'. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Sri Lanka Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial information is not presented, in all material respects, in accordance with the Sri Lanka Accounting Standard 34 [LKAS34] - Interim Financial Reporting.
COLOMBO | CHARTERED ACCOUNTANTS |
09 August 2024 |
C S Manoharan FCA, T U Jayasinghe FCA, H P V Lakdeva FCA, K M D R P Manatunga ACA, L A C Tillekeratne ACA, M D B Boyagoda FCA, N R Gunasekera FCA, W D A S U Perera ACA, D C A J Yapa ACA, Minfaz Hilmy FCA
Regd. Office: P.O. Box 918, 100 Braybrooke Place, Colombo 02, Sri Lanka. Reg. No.: w/4179
Page 2
DIALOG AXIATA PLC
Statement of financial position
(all amounts in Sri Lanka Rupees thousands)
ASSETS
Non-current assets
Intangible assets
Contract costs assets
Property, plant and equipment
Right-of-use assets
Deferred tax asset
Investment in subsidiaries
Investment in associates
Other financial assets
Current assets
Inventories
Trade and other receivables
Other financial assets
Cash and cash equivalents
Total assets
EQUITY
Capital and reserves attributable to equity holders Stated capital
Reserves
Non-controlling interest
Total equity
LIABILITIES
Non-current liabilities
Borrowings
Contract liabilities
Deferred income
Lease liabilities
Other financial liabilities
Employee benefit payables
Provision for other liabilities
Deferred tax liability
Current liabilities
Trade and other payables
Borrowings
Other financial liabilities
Lease liabilities
Contract liabilities
Current income tax liabilities
Total liabilities
Total equity and liabilities
Net assets per share (Rs.)
Group | Company | ||
30 June | 31 December | 30 June | 31 December |
2024 | 2023 | 2024 | 2023 |
(Reviewed) | (Audited) | (Reviewed) | (Audited) |
34,207,785 | 17,454,309 | 11,195,226 | 11,493,089 |
13,191,871 | 12,241,671 | 3,970,022 | 3,852,701 |
153,931,291 | 151,278,847 | 107,915,994 | 112,289,708 |
11,487,080 | 8,312,349 | 8,289,331 | 8,100,888 |
301,488 | 304,966 | - | - |
- | - | 49,762,926 | 39,207,068 |
- | 34,585 | - | - |
3,596,020 | 2,967,502 | - | - |
216,715,535 | 192,594,229 | 181,133,499 | 174,943,454 |
2,497,797 | 3,035,674 | 343,075 | 590,481 |
59,169,027 | 47,534,230 | 36,315,628 | 35,872,078 |
1,763,517 | 2,469,869 | 440,727 | - |
52,804,841 | 40,613,115 | 42,654,949 | 28,494,858 |
116,235,182 | 93,652,888 | 79,754,379 | 64,957,417 |
332,950,717 | 286,247,117 | 260,887,878 | 239,900,871 |
39,905,563 | 29,349,706 | 39,905,563 | 29,349,706 |
27,175,204 | 37,031,245 | 16,326,801 | 27,749,456 |
(56,607) | (44,189) | - | - |
67,024,160 | 66,336,762 | 56,232,364 | 57,099,162 |
64,830,669 | 67,674,317 | 55,268,121 | 63,626,373 |
9,429,463 | 5,701,768 | 8,480,467 | 4,602,154 |
290,004 | 350,828 | 290,004 | 350,828 |
10,616,851 | 7,871,095 | 7,693,908 | 7,645,323 |
109,355 | 164,447 | - | - |
2,439,913 | 2,095,107 | 1,701,254 | 1,467,253 |
4,390,848 | 3,434,609 | 3,254,972 | 3,071,880 |
516,845 | 201,982 | - | - |
92,623,948 | 87,494,153 | 76,688,726 | 80,763,811 |
83,782,912 | 66,786,599 | 59,829,173 | 49,714,487 |
68,443,047 | 55,091,099 | 52,752,031 | 44,818,512 |
3,412,201 | 1,672,808 | - | - |
2,287,027 | 777,596 | 1,569,057 | 738,978 |
14,114,399 | 6,667,964 | 12,645,357 | 5,487,863 |
1,263,023 | 1,420,136 | 1,171,160 | 1,278,058 |
173,302,609 | 132,416,202 | 127,966,778 | 102,037,898 |
265,926,557 | 219,910,355 | 204,655,514 | 182,801,709 |
332,950,717 | 286,247,117 | 260,887,878 | 239,900,871 |
7.28 | 8.04 | 6.11 | 6.92 |
The notes on pages 8 to 14 form an integral part of these financial statements.
I certify that these financial statements have been prepared in compliance with the requirements of the Companies Act, No. 07 of 2007.
……………………………….......
Group Chief Financial Officer
Date: 09 August 2024
The Board of Directors is responsible for the preparation and presentation of these financial statements. Approved and signed for and on behalf of the Board of Directors.
………………………… | ………………… |
Director | Director |
Date: 09 August 2024 | Date: 09 August 2024 |
Page 3 | ||||
DIALOG AXIATA PLC | ||||
Statement of comprehensive income | ||||
(all amounts in Sri Lanka Rupees thousands) | Group | Company | ||
Six months ended 30 June | Six months ended 30 June | |||
2024 | 2023 | 2024 | 2023 | |
(Reviewed) | (Restated) | (Reviewed) | (Reviewed) | |
Revenue | 82,542,654 | 94,524,998 | 51,626,029 | 50,433,009 |
Direct costs | (51,692,926) | (63,533,342) | (28,538,176) | (27,446,674) |
Gross profit | 30,849,728 | 30,991,656 | 23,087,853 | 22,986,335 |
Distribution costs | (9,910,499) | (9,023,277) | (8,284,383) | (7,664,546) |
Administrative costs | (15,526,124) | (14,618,731) | (11,926,133) | (11,363,284) |
Net impairment losses on financial assets | (464,029) | (1,016,330) | (204,174) | (452,209) |
Other income | 133,345 | 184,919 | 51,461 | 72,052 |
Operating profit | 5,082,421 | 6,518,237 | 2,724,624 | 3,578,348 |
Finance income | 773,437 | 1,027,864 | 879,172 | 1,162,352 |
Finance costs | (5,982,668) | (6,646,214) | (5,415,283) | (6,275,780) |
Net foreign exchange gain | 2,960,466 | 12,310,515 | 2,694,188 | 12,531,851 |
Finance (cost) / income - net | (2,248,765) | 6,692,165 | (1,841,923) | 7,418,423 |
Share of loss from associates - net of tax | (34,585) | (34,609) | - | - |
Profit before income tax | 2,799,071 | 13,175,793 | 882,701 | 10,996,771 |
Income tax expense | (1,615,784) | (1,388,491) | (1,253,518) | (1,375,899) |
Profit / (loss) for the year | 1,183,287 | 11,787,302 | (370,817) | 9,620,872 |
Other Comprehensive Income | - | - | - | - |
Total comprehensive income for the period | 1,183,287 | 11,787,302 | (370,817) | 9,620,872 |
Profit / (loss) for the period attributable to: | ||||
- owners of the Company | 1,195,115 | 11,794,786 | (370,817) | 9,620,872 |
- non-controlling interest | (11,828) | (7,484) | - | - |
Total comprehensive income for the period | ||||
attributable to: | ||||
- owners of the Company | 1,195,115 | 11,794,786 | (370,817) | 9,620,872 |
- non-controlling interest | (11,828) | (7,484) | - | - |
Earnings/ (loss) per share | ||||
- basic | 0.14 | 1.43 | (0.04) | 1.17 |
- diluted | 0.14 | 1.43 | (0.04) | 1.17 |
The notes on pages 8 to 14 form an integral part of these financial statements.
Page 4 | ||||
DIALOG AXIATA PLC | ||||
Statement of comprehensive income | ||||
(all amounts in Sri Lanka Rupees thousands) | Group | Company | ||
Three months ended 30 June | Three months ended 30 June | |||
2024 | 2023 | 2024 | 2023 | |
(Reviewed) | (Restated) | (Reviewed) | (Reviewed) | |
Revenue | 40,982,512 | 46,423,391 | 25,998,130 | 24,837,550 |
Direct costs | (25,188,472) | (30,913,741) | (14,084,735) | (13,622,360) |
Gross profit | 15,794,040 | 15,509,650 | 11,913,395 | 11,215,190 |
Distribution costs | (4,850,937) | (4,404,561) | (4,069,953) | (3,722,740) |
Administrative costs | (8,088,358) | (6,770,257) | (6,323,044) | (5,254,439) |
Net impairment losses on financial assets | (550,451) | (747,826) | (242,000) | (322,780) |
Other income | 56,410 | 215,097 | 23,092 | 126,780 |
Operating profit | 2,360,704 | 3,802,103 | 1,301,490 | 2,042,011 |
Finance income | 412,757 | 374,114 | 464,096 | 421,428 |
Finance costs | (2,624,204) | (3,859,476) | (2,349,669) | (3,557,226) |
Net foreign exchange (loss) / gain | (763,915) | 3,445,693 | (763,319) | 3,740,653 |
Finance income - net | (2,975,362) | (39,669) | (2,648,892) | 604,855 |
Share of loss from associates - net of tax | (15,402) | (16,832) | - | - |
(Loss) / profit before income tax | (630,060) | 3,745,602 | (1,347,402) | 2,646,866 |
Income tax expense | (951,686) | (645,895) | (631,358) | (629,832) |
(Loss) / profit for the year | (1,581,746) | 3,099,707 | (1,978,760) | 2,017,034 |
Other Comprehensive Income | - | - | - | - |
Total comprehensive income for the period | (1,581,746) | 3,099,707 | (1,978,760) | 2,017,034 |
(Loss) / profit for the period attributable to: | ||||
- owners of the Company | (1,574,377) | 3,103,167 | (1,978,760) | 2,017,034 |
- non-controlling interest | (7,369) | (3,460) | - | - |
Total comprehensive income for the period | ||||
attributable to: | ||||
- owners of the Company | (1,574,377) | 3,103,167 | (1,978,760) | 2,017,034 |
- non-controlling interest | (7,369) | (3,460) | - | - |
Earnings per share | ||||
- basic | (0.19) | 0.38 | (0.24) | 0.24 |
- diluted | (0.19) | 0.38 | (0.24) | 0.24 |
The notes on pages 8 to 14 form an integral part of these financial statements.
Page 5
DIALOG AXIATA PLC
Consolidated statement of changes in equity | ||||
(all amounts in Sri Lanka Rupees thousands) | ||||
Attributable to owners of the | ||||
Parent | ||||
Non- | ||||
Stated | controlling | |||
capital | Reserves | interest | Total | |
Balance at 1 January 2024 | 29,349,706 | 37,031,245 | (44,189) | 66,336,762 |
Profit / (loss) for the period | - | 1,195,115 | (11,828) | 1,183,287 |
Other comprehensive income | - | - | - | - |
Total comprehensive income for the period | - | 1,195,115 | (11,828) | 1,183,287 |
Transactions with non-controlling interest | - | 682 | (590) | 92 |
Dividend to shareholders | - | (11,051,838) | - | (11,051,838) |
Issue of shares | 10,555,857 | - | - | 10,555,857 |
Balance at 30 June 2024 | 39,905,563 | 27,175,204 | (56,607) | 67,024,160 |
Balance at 1 January 2023 | 29,349,706 | 15,866,349 | (66,107) | 45,149,948 |
Profit / (loss) for the period | - | 11,794,786 | (7,484) | 11,787,302 |
Other comprehensive income | - | - | - | - |
Total comprehensive income for the period | - | 11,794,786 | (7,484) | 11,787,302 |
Transactions with non-controlling interest | - | (18,867) | 18,915 | 48 |
Employee share scheme - value of employee | ||||
services | - | (158,860) | - | (158,860) |
Balance at 30 June 2023 | 29,349,706 | 27,483,408 | (54,676) | 56,778,438 |
Balance at 01 July 2023 | 29,349,706 | 27,483,408 | (54,676) | 56,778,438 |
Profit / (loss) for the period | - | 8,329,308 | (3,753) | 8,325,555 |
Other comprehensive income | - | 1,218,417 | 16,990 | 1,235,407 |
Total comprehensive income for the period | - | 9,547,725 | 13,237 | 9,560,962 |
Transactions with non-controlling interest | - | 113 | (2,750) | (2,637) |
Employee share scheme - value of employee | ||||
services | - | (1) | - | (1) |
Balance at 31 December 2023 | 29,349,706 | 37,031,245 | (44,189) | 66,336,762 |
The notes on pages 8 to 14 form an integral part of these financial statements.
Page 6 | ||||
DIALOG AXIATA PLC | ||||
Company statement of changes in equity | ||||
(all amounts in Sri Lanka Rupees thousands) | ||||
Attributable to owners of the Company | ||||
Stated capital | Reserves | Total | ||
Balance at 1 January 2024 | 29,349,706 | 27,749,456 | 57,099,162 | |
Loss for the period | - | (370,817) | (370,817) | |
Other comprehensive income | - | - | - | |
Total comprehensive income for the period | - | (370,817) | (370,817) | |
Dividend to shareholders | - | (11,051,838) | (11,051,838) | |
Issue of shares | 10,555,857 | - | 10,555,857 | |
Balance at 30 June 2024 | 39,905,563 | 16,326,801 | 56,232,364 | |
Balance at 1 January 2023 | 29,349,706 | 15,136,848 | 44,486,554 | |
Profit for the period | - | 9,620,872 | 9,620,872 | |
Other comprehensive income | - | - | - | |
Total comprehensive income for the period | - | 9,620,872 | 9,620,872 | |
Employee share scheme - value of employee services | - | (158,860) | (158,860) | |
Balance at 30 June 2023 | 29,349,706 | 24,598,860 | 53,948,566 | |
Balance at 01 July 2023 | 29,349,706 | 24,598,860 | 53,948,566 | |
Profit for the period | - | 2,377,083 | 2,377,083 | |
Other comprehensive income | - | 773,514 | 773,514 | |
Total comprehensive income for the period | - | 3,150,597 | 3,150,597 | |
Employee share scheme - value of employee | ||||
Services | - | (1) | (1) | |
Balance at 31 December 2023 | 29,349,706 | 27,749,456 | 57,099,162 |
The notes on pages 8 to 14 form an integral part of these financial statements.
DIALOG AXIATA PLC
Statement of cash flows
(all amounts in Sri Lanka Rupees thousands)
Cash flows from operating activities
Cash generated from operations
Interest received
Interest paid
Income taxes paid
Employee benefits obligations paid
Net cash inflow from operating activities
Cash flows from investing activities
Purchase of property, plant and equipment Purchase of intangible assets
Proceeds from sale of property, plant and equipment
Net cash outflow from investing activities
Cash flows from financing activities
Repayment of borrowings Proceeds from borrowings Principal element of lease payment
Proceeds from share issue - non controlling interest Redemption of preference shares from non- controlling interests
Net cash inflow / (outflow) from financing activities Net increase / (decrease) in cash and cash equivalents Movement in cash and cash equivalents
At beginning of the period
Increase / (decrease)
Effect of exchange rate changes
At end of the period
Page 7
Group | Company | ||
30 June | 30 June | ||
2024 | 2023 | 2024 | 2023 |
(Reviewed) | (Reviewed) | (Reviewed) | (Reviewed) |
25,698,579 | 7,730,735 | 25,575,928 | 15,246,055 |
799,518 | 1,999,938 | 624,393 | 1,622,934 |
(5,192,950) | (7,502,551) | (4,528,612) | (6,960,521) |
(1,360,416) | (1,612,369) | (1,360,416) | (1,612,369) |
(152,910) | (450,717) | (70,538) | (419,968) |
19,791,821 | 165,036 | 20,240,755 | 7,876,131 |
(9,570,341) | (20,320,690) | (5,740,410) | (16,655,197) |
(2,961,776) | (1,734,078) | (2,941,256) | (1,709,182) |
- | 891 | - | 70 |
(12,532,117) | (22,053,877) | (8,681,666) | (18,364,309) |
(12,287,366) | (23,604,027) | (10,895,193) | (23,128,932) |
24,398,434 | 30,957,500 | 17,984,000 | 21,182,500 |
(1,309,427) | (1,331,250) | (1,244,963) | (1,301,164) |
15,093 | 48 | - | - |
(34,000) | - | - | - |
10,782,734 | 6,022,271 | 5,843,844 | (3,247,596) |
18,042,438 | (15,866,570) | 17,402,933 | (13,735,774) |
7,863,324 | 32,241,475 | (90,479) | 23,588,257 |
18,042,438 | (15,866,570) | 17,402,933 | (13,735,774) |
(567,899) | (2,024,063) | (549,706) | (1,516,095) |
25,337,863 | 14,350,842 | 16,762,748 | 8,336,388 |
Cash and cash equivalents at the end of the financial period consist of the following: | ||||
Group | Company | |||
30 June 2024 | 30 June 2023 | 30 June 2024 | 30 June 2023 | |
Cash in hand and at bank | 52,804,841 | 48,433,003 | 42,654,949 | 40,007,507 |
Bank overdrafts | (27,466,978) | (34,082,161) | (25,892,201) | (31,671,119) |
25,337,863 | 14,350,842 | 16,762,748 | 8,336,388 |
The notes on pages 8 to 14 form an integral part of these financial statements.
Page 8
DIALOG AXIATA PLC
Notes to the condensed consolidated interim financial statements
(all amounts in the notes are in Sri Lanka Rupees thousands unless otherwise stated)
-
General information
Dialog Axiata PLC ('the Company') and its subsidiaries (together 'the Group') provide communication services (mobile, fixed, broadband, international gateway services), telecommunication infrastructure services (tower infrastructure and transmission services), media (digital television services based on multiple media - satellite, cable, terrestrial), digital services including but not limited to digital commerce (mobile and eCommerce), electronic payments (including mobile payment), digital health, education, navigation and enterprise services and financial services, software solutions, data center services, manpower services, provision of Information Technology and venture capital investment activities.
Dialog Axiata PLC is a public limited liability company incorporated and domiciled in Sri Lanka and is listed on the Colombo Stock Exchange since 28 July 2005. The registered office of the Company is located at 475, Union Place, Colombo 2. - Basis of preparation
The condensed interim financial statements for the period ended 30 June 2024 of the Company and the Group have been prepared in accordance with Sri Lanka Accounting Standard LKAS 34, 'Interim Financial Reporting'. The condensed consolidated interim financial statements should be read in conjunction with the audited financial statements for the year ended 31 December 2023. - Segment information
Operating segments are presented in a manner consistent with the internal reporting provided to chief operating decision makers.
- The segment results for the period ended 30 June 2024 are as follows:
Fixed telephony | |||||
Mobile | and broadband | Television | Elimination | ||
operation | operation | operation | /Adjustment | Group | |
Total segmental revenue | 57,266,960 | 28,110,836 | 6,107,408 | - | 91,485,204 |
Inter-segment revenue | (5,643,805) | (3,285,238) | (13,507) | - | (8,942,550) |
Revenue from external customers | 51,623,155 | 24,825,598 | 6,093,901 | - | 82,542,654 |
Segment operating profit / (loss) for the | |||||
period | 3,080,680 | 2,419,395 | (609,346) | 191,692 | 5,082,421 |
Finance cost - net | (2,248,765) | ||||
Share of loss from associate - net of tax | (34,585) | ||||
Profit before income tax | 2,799,071 | ||||
Income tax expense | (1,615,784) | ||||
Profit for the period | 1,183,287 |
- Other segment items included in the statement of comprehensive income are as follows:
Fixed telephony | |||||
Mobile | and broadband | Television | Elimination | ||
operation | operation | operation | /Adjustment | Group | |
Depreciation, amortization | |||||
and impairment | 14,955,013 | 5,586,190 | 1,563,748 | - | 22,104,951 |
Page 9
DIALOG AXIATA PLC
Notes to the condensed consolidated interim financial statements (Continued)
3 Segment information (Continued)
- The segment assets and liabilities at 30 June 2024 and capital expenditure for the period then ended are as follows:
Fixed telephony | |||||
Mobile | and broadband | Television | Elimination | ||
operation | operation | operation | /adjustment | Group | |
Assets | 296,264,392 | 64,958,151 | 12,384,780 | (33,332,628) | 340,274,695 |
Inter-segment assets | (3,233,653) | (4,077,794) | (12,531) | - | (7,323,978) |
Total assets | 293,030,739 | 60,880,357 | 12,372,249 | (33,332,628) | 332,950,717 |
Liabilities | 240,092,244 | 18,945,878 | 14,805,556 | - | 273,843,678 |
Inter-segment liabilities | (6,492,277) | (428,461) | (996,383) | - | (7,917,121) |
Total liabilities | 233,599,967 | 18,517,417 | 13,809,173 | - | 265,926,557 |
Capital expenditure | 7,966,363 | 3,797,980 | 17,237 | - | 11,781,580 |
- The segment results for the period ended 30 June 2023 are as follows:
Fixed telephony | ||||||
Mobile | and broadband | Television | Elimination | |||
operation | Operation | operation | /adjustment | Group | ||
Total segmental revenue | 54,308,653 | 41,426,953 | 6,053,538 | - | 101,789,144 | |
Inter-segment revenue | (4,604,503) | (2,584,191) | (75,452) | - | (7,264,146) | |
Revenue from external | ||||||
customers | 49,704,150 | 38,842,762 | 5,978,086 | - | 94,524,998 | |
Segment operating profit / | ||||||
(loss) for the period | 3,689,061 | 2,144,923 | (146,469) | 830,722 | 6,518,237 | |
Finance costs - net | 6,692,165 | |||||
Share of loss from associates - net of tax | (34,609) | |||||
Profit before income tax | 13,175,793 | |||||
Income tax expense | (1,388,491) | |||||
Profit for the period | 11,787,302 |
- Other segment items included in the statement of comprehensive income are as follows:
Fixed telephony | |||||
Mobile | and broadband | Television | Elimination | ||
operation | operation | operation | /adjustment | Group | |
Depreciation, amortization | |||||
and impairment | 13,717,819 | 5,710,527 | 1,406,409 | - | 20,834,755 |
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