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Dialog's after tax profits up 77% to Rs. 3.45 billion in 1H, 2005

Dialog Telekom Ltd., (DTL) profit's after taxation increased by 77 per cent to Rs. 3.45 billion for the six months ended June 30, 2005 compared to Rs. 1.95 billion in the same period in 2004.

For the six months ended June 30, DTL recorded a revenue of Rs. 8.1 billion, representing a growth of 62 per cent above the Rs. 5.04 billion recorded for the corresponding period in the previous year.

Revenue growth has been driven by the consistent growth in pre-paid and post-paid subscriber base. The post-paid active subscriber base increased by 51 per cent from 267,024 (for the period ended June 30, 2004), to 403,200 as at June 30, 2005.

The pre-paid active subscriber base increased by 68 per cent from 794,362 to 1,336,990 during the same period.

Compared with the 2004 performance, the contribution from pre-paid services increased from 35 per cent to 37 per cent.

Total direct costs for the period amounted to Rs. 2.59 billion compared to Rs. 1.77 billion in the previous year, a 46 per cent increase.

Direct costs to revenue for the six months period ended June 30, 2004 and 2005 were 35 per cent and 32 per cent, an improvement of performance in revenue relative terms.

Significant components of direct cost are telecom equipment depreciation, network cost, international origination cost, outbound roaming cost and lease circuit rental costs. Operating costs constitute mainly of selling and distribution expenses, manpower and general administration costs.

Total operating costs for the six months period ended June 30, 2005 amounted to Rs. 1.99 billion, 24.39 per cent of revenue. The comparative figure for the six months period ended June 30, 2004 was 24.56 per cent.

The company has shown substantial growth in earnings before interest, tax, depreciation and amortisation (EBITDA). EBITDA was recorded at Rs 4.55 billion for the period ended June 30, 2005 compared to Rs 2.78 billion for the period ended June 30, 2004, representing a growth of 64 per cent.

Earnings growth is underpinned by revenue growth of 62 per cent combined with enhancements in operational efficiencies as demonstrated by the fact that net profit after tax has displayed a growth of 77 per cent.

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