Oodles of Money!!!
so there i was.. sitting bored... thinkin "where does dhiraagu get the money for a such a huge campaign to change it's logo ( a crappy logo at that )?" well so i decided to find out.... now here i am half an hour later going... "wow.... my question has been answered...!!! "there are a few facts that i would like to run through...
Fact 1:
Source: Cable and Wireless 2004-2005 Annual Report
http://www.investis.com/reports/cw_ar_2005_en/report.php?page=76&type=0&zoom=1
Page: 74/75
ok lets run through this: this is part of the page mentioned above, not the text circled in red. ( well could be maroon, dhiraagu insists that dhiraagu is red and wataniya is maroon which makes all the difference... yeah right!!! --dark red bright red-- looks similar to me)
anyways...points to note here: ( year ended 31 March 2005)
Total Turnover: 167 Million pounds ( of which 60 Percent is from Maldives and Guernsey...according to the report.)
Total Profit : 93 Million pounds
There are 2 ASSUMPTIONS i make here.
1- the 60% trends holds true for expenses and therefore the profits as well.
2- Guernsey and Maldives will have an equal split of the 60%.
Note to self abt Guernsey:
This 2nd assumption is a bit far fetched as Guernsey has a population of 65000+ (2005 estimate according to CIA world factbook (http://www.cia.gov/cia/publications/factbook/geos/gk.html) and as any maldivian would know maldives has 300000+ population.( the 2000 census says its 270000+ http://www.planning.gov.mv/yrb2004/yrb04/Yearbook/3.Population/3.1.htm ) so accounting for the 5 year gap.
i for one think the revenues would be based on the potential market ie: the population. but thats just me.. so i definelty think its a fair assumption that maldives at least accounts for half the turnover.
Calculations
If total profit for the rest of the world is 93 million pounds, then based on the 1st assumption. 60% of the profit would be attributable to Maldives and Guernsey.
= 93,000,000 x 0.6 = 55,800,000 Pounds profit from Maldives and Guernsey.
now 2nd Assumption that equal split between the two areas.
55,800,000 / 2 = 27,900,000 pounds for each ( so Maldives )
hmmmm 27.9 Million profit from Maldives? how much does that translate into?
exchange rate as of today : ruffiya 23.4771 to the pound (http://www.mma.gov.mv/er.php)
27,900,000 x 23.4771 = MRF 665,011,090.00 ( did i get that right?)
Wow.. lemme put that into words: Six hundred and Sixy five Million, Eleven thousand and nintey rifiyaa....PROFIT???
WOAH.. thats a lot? how much does that mean in a day?
665,011,090.00 / 365 = MRF 1,794,550.931 per DAY!!
NOW THATS SOMETHING!! 1.7 million PROFIT.. per day.. not sales, not turnover, not revenue.. jus PROFIT?
Okey.. by those calculations and assumption i figure dhiraagu makes a SHITLOAD of money..hmmm lets try another figure...
Fact 2:
Source: Ministry of Planning, Yearbook 2004
( web address: http://www.planning.gov.mv/yrb2004/yrb04/Yearbook/13.Public%20Finance/13.3.htm )
Above you can see an extract from the website address which lists the government revenues the circled one is dhiraagus Budget Est. contribution for 2004 as per the website. figure in millions of Rf.The Govt. Holds a 55% share in dhiraagu while CW owns remaing 45% - *
now assuming govt gets that 161.9 Mil as dividend.. the total declared dividend should be as follows:
161.9 / 55 x 100 = 294.36 Million Rf.
now mind you this is only the decalred dividend. this does not account for retained earnings of the company which like any reasonable company would not declare the whole profit. and would retain a resonable level.
the question of the amount retained is a mystery. but lets assume.. a modest 20% retention before dividend is declared.
so.. on that assumption profit before retained earnings is deduted should be,
294.36 x 100 /80 = 367.95 Million Ruffiya.... PROFIT
how much does that translate to in a day?
367,950,000.00 / 365 = 1,008,082.19 Million
so.. dhiraagu makes 1 million+ profit per day... reasonable estimate!
Conclusion
sooo according to my calculation.. dhiraagu makes from anywhere around 1 - 1.7 million rufiya profit per day... no wonder they can afford to do anythin they want to... heck.. if they wanted to they prolly could change to pink tomorrow and wouldnt flinch... jus hope they pass down some of that profit to us the customers.
Disclaimers
This article and opinions included in it are highly judgmental and not intended to be believed as seen. My conclusions are mine and mine alone and in all probablilty could be the furthest from the truth. The references i have made are genuine and verifiable, and publicly available! any assumption i have made as i feel fit and could be taken differently. Calculations may have errors, I encourage anyone reading this to come to their own conclusions. Do your own thinking draw you own conclusions.. thats why u have a brain :)
p.s -> i know there are spelling mistakes and grammatical errors in this article... too lazy to correct them, been writing this an i need a break ..
* - Previously i have written that the govt owns 51% of Dhiraagu while CW owns 49%... thanks to a comment posted this has been corrected show that govt owns 55% while CW owns 45%.
my apologies for this error.
posted by Daadi @ 11:51 PM
11 Comments:
55% of dhirragu is owned by maldivian gov ... not 51%
My apologies for that mistake,
will correct the data to reflect that.
thanks
haha! nice!
well done.. go dude.
hehe... u ve done a good background research there.. :P
interestin article, and totally agree.. !!!
dhiraagu made 1.2 Bn(1 200 000 000) MRF in year 2005 as profit
correction: year 2004
toxy.. where did u get that information from?
would be very interesting if it were true.. :)
with whats happening to our companys ie, STELCO, STO, MNSML, Im a happy that atleast Dhiraagu is making a profit. and a good profit,
yeahh good isnt it.. at least the govt will get 55% of divident declared is of course much needed revenue... dhiraagu making a profit isnt all that bad really...
reminds me.. any update on the 1.2 billon profit for 2005???... seems jus a wee bit far fetched for me..
Awesome job. My hat off to you. I have done the calculation myself and it perfectly matches with yours.
I beleive the most accurate methos is the one using The figure from Ministry of Finance revenue from Dhiraagu. And by that method Dhiraagu earns a little over Rf1 million in profit a day! which comes to around $28m a year. This assumption is based on retained revenuw of 20% as in this article too, which i beleive is a fair assumption.
By this i think we can say pretty surely that Dhiraagu is the most profitable company in the Maldives. and guys remember we are talkin bout profits. just imagine their revenue!!
Cant wait for Dhiraagu to go public with an IPO. STO shares would be nothin compared to this.
Once again congrats. Very nice job. And pretty interesting and good blof overall. Keep it up!
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