Dialog posts Rs. 2.4 b profit in first q.

Corporate Performance: Dialog Telekom Ltd, recorded a Profit after Tax (PAT) of Rs. 2.40 billion for the quarter ended 31 March 2006. Dialog Telekom and its subsidiary Dialog Broadband Networks (Pvt) Ltd will hereinafter be referred to collectively, as "the Group".

DTL (hereinafter referred to as "the Company") recorded a PAT of Rs. 2.31 billion representing a 34 per cent earnings growth relative to the figure of Rs. 1.72 billion recorded for the corresponding quarter in 2005.

For the quarter ended 31 March 2006, the Company's Revenue increased by 51 per cent to Rs. 5.83 Bn as compared to the first quarter of 2005. Revenue growth is fuelled by parallel growth in the key revenue drivers of subscriber base, network reach, increase in usage per customer and expansion in international business.

Revenue growth has been driven by the consistent growth in both pre-paid and post-paid subscriber base. Domestic revenues, which consist mainly of pre-paid and post-paid revenue, accounted for approximately 71 per cent of the Company's Revenue in the first quarter of 2006.

Total revenue is composed of 34 per cent from post-paid revenue, 37 per cent from pre-paid revenue and 8 per cent from International Roaming revenue. When compared with results pertaining to the first quarter of 2005, pre-paid contribution has increased from 33 per cent to 37 per cent with a growth in subscriber base from 1.18 Mn to over 1.84Mn.

The Company's direct costs for the period amounted to Rs. 2.07 Bn compared to Rs. 1.32 Bn in the previous year, which is a 56 per cent increase. In terms of costs, the Company's direct costs as a proportion of revenue have increased marginally from the 34 per cent recorded for first quarter 2005 to 35 percent for the same period in 2006.

Significant components of direct cost are Telecom equipment depreciation, Network cost, International Origination cost, Outbound roaming cost, Lease circuit rental costs and International Telecommunication Levy.

The Company's operating costs of Rs. 1.32 Bn for the quarter increased by 63 per cent when compared to first quarter of 2005. Operating costs comprise mainly of selling and distribution expenses, manpower and general administration costs.