Dialog Grou Dialog Group revenue grows by 18% p revenue grows by 18%

Dialog Group recorded strong growth in revenue during the first quarter to register Rs 12.9 billion, a significant increase of 8% relative to Q4 2011 and 18% relative to Q1 2011 ended 31st March 2012.

Growth in group revenue was driven by healthy growth in segmental revenues pertaining to the Mobile, International, Digital Pay Television and Tele-infrastructure businesses of the Group. Dialog Group EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) was recorded at Rs 4.5 billion in Q1 2012, up 27% YoY.

EBITDA performance however exhibited a contraction of 4% on immediate QoQ basis, on the backdrop of significant inflation with respect to energy related costs and foreign currency denominated inputs. In addition to the aforementioned input cost dynamics, the QoQ comparison is further impacted by the recognition of Rs 311 million Telecommunication Development Fund (TDF) refund in the previous quarter.

Downstream of robust performance with respect to Revenue and EBITDA, the depreciation of the SLR relative to the US $ by 12.4% QoQ, resulted in the provisioning of a non-cash translational Foreign Exchange loss of Rs 2.1 billion, leading to the Dialog Group recording a Net loss of Rs 531 million for Q1 2012. The Group’s PAT performance also reflects the absorption of acquisition expenses amounting to Rs 343 million with respect to the acquisition of Suntel Limited, by DBN. Group PAT normalised for the exceptional (non-cash) foreign exchange loss and the one-off acquisition expenses, is recorded at Rs 1.9 billion - an increase of 14% QoQ and 85% YoY.

At an entity level, the Company continued to contribute a major share (91%) of Group Revenue and (92%) of Group EBITDA. The company continued to leverage its market leading position within Sri Lanka’s mobile sector featuring a subscriber base of 7.4 million, to deliver strong growth in revenue. The Company recorded revenue of Rs 11.8Bn in Q1 2012, up 8% relative to Q4 2011 and 19% relative to Q1 2011. The Company continued to deliver a healthy momentum in EBITDA, recording growth of 27% relative to Q1 2011 at a margin of 35%. Company EBITDA,

However, contracted by 4% relative to Q4 2011 on the backdrop of significant inflation with respect to energy related costs and foreign currency denominated inputs, and as alluded to previously, the recognition of a TDF refund of Rs 311 million in the previous quarter. Company EBITDA normalized for the impact of the one-off TDF refund in the previous quarter, registered growth of 4% on a QoQ basis.