Dialog posts Rs. 7.55 bn for first 9 months

COMPANY RESULT: Dialog Telekom Ltd, has recorded a profit after tax (PAT) of Rs. 7.55 Bn for the nine months ended September 30, 2006. Dialog Telekom and its subsidiaries (Dialog Broadband Networks (Pvt) Ltd and Asset Media (Pvt) Ltd) will hereinafter be referred to collectively, as "the Group".

The company recorded a PAT of Rs. 7.46 bn. up 45 per cent relative to the corresponding period in 2005.

The period ending September 30, 2006 featured significant downward revision of tariffs (in excess of 30 per cent) thereby enhancing the affordability of the company's telecommunications services to its 2.8 mn strong subscriber base spread across all provinces of the country.

The reduction in tariffs was accompanied by aggressive expansion of coverage in rural areas of the country fuelled by the launching of the company's USD 150 mn (Rs 15 bn) investment project billed by the BoI as one of the single largest infrastructure investment in 2006.

The company's financial results for the nine months ended September 30 2006 and for the corresponding period in 2005 along with the consolidated results of the Group for the nine months ended September 30, 2006 are depicted in the ensuing table.

The results as published have been subjected to a limited review carried out by the external auditors of the Company, PricewaterhouseCoopers. Total operating revenue increased 44 percent to Rs. 18.50 bn., driven mainly by higher call revenues accruing from a larger subscriber base.

The prepaid segment contributed a major part of the growth. Other factors driving revenue growth include the growth in coverage and increased international traffic and associated revenues.

Domestic revenues, which consist mainly of pre-paid and post-paid revenue, accounted for approximately 79 per cent of the company revenue for the nine months ended September 30, 2006.

The major components of total (company) revenue are pre-paid revenue (42 per cent), post-paid revenue (37 per cent) and inbound roaming revenue (4 per cent). When compared with results for the period ended September 30, 2005, the contribution from the pre-paid segment has increased from 36 per cent to 42 per cent.

The company's cellular subscriber base increased by 47 per cent to 2.84 mn subscribers. The prepaid segment increased by 57 per cent from 1.51 Mn to 2.36 mn. In parallel, the postpaid subscriber base increased by 13 percent from 0.42 Mn to 0.48 Mn. The downward revision of tariff on the July 7 served to enhance the value delivered to Dialog Customers.

Tariff reductions also served as a catalyst for the achievement of a significant boost in net additions as well as in Minutes of Use (MoU).

Postpaid MoU registered an increase of 5 per cent relative to the quarter ended June 30, 2006. Average Postpaid ARPU (Average Revenue per User per month) for the nine months ended September 30, 2006 was up 6 per cent to Rs. 1,698 per month compared to the same period in 2005.