Male’, Maldives – Dhiraagu generated a Net Profit of MVR 188 million in fourth quarter (Q4) of 2020, a 19% increase compared to Q3 of 2020
Revenue generated in Q4 of 2020 amounted to MVR 621 million, a 17.5% decrease compared to Q4 of 2019. The decrease is due to the Covid19 Pandemic resulted in slower economic growth and a halt in tourist arrivals in mid 2020. As the Maldivian economy recovered and borders opened up again in Q4 of 2020, revenue grew by 6% compared to Q3 of 2020 primarily driven by growth from roaming revenues due to tourist arrivals.
The Operating costs incurred by Dhiraagu in Q4 of 2020 stood at MVR 294 million, a significant decrease of 17% compared to Q4 of 2019. Operating costs also fell by MVR 3.8 million when compared to Q3 of 2020.
Dhiraagu generated a Net Profit of MVR 188 million in Q4 of 2020; this was a 19% increase compared to Q3 of 2020. The economic downturn led to a 35% fall in Net Profit when compared to Q4 of 2019.
Shareholder Value was created through an increase in Earnings Per Share (EPS). EPS in Q4 of 2020 amounted to MVR 2.48 while in Q3, it was at MVR 2.09. Dividend Yield remained stable at 11.9% in both Q4 and Q3 of 2020. Furthermore, the company’s cashflow per share increased from MVR 9.47 in Q3 to MVR12.63 in Q4. The company paid MVR 157 million in dividends paid in 2020.
As for the trading highlights, Market Capitalization as at quarter end diminished from MVR 7.68 billion in Q3 to MVR 7.62 billion in Q4 of 2020.
Dhiraagu is one of the leading telecommunication providers in the Maldives. In 2020, the company introduced services such as “Ecosys” Hospitality and collaborated with Maldives Inland Revenue Authority (MIRA) to connect MIRA’s ‘VaaruPay’ Portal with DhiraaguPay. Dhiraagu also installed the Maldives-Sri Lanka Cable (MSC) to ensure uninterrupted connectivity.
With the vaccine rollout in early 2021, along with a more promising economic outlook, it is likely that Dhiraagu’s financial performance will improve in the year ahead.