Dialog consolidates growth momentum with strong Q2 results

Dialog Axiata PLC and the Dialog Axiata Group for the six months ended June 30 have recorded strong growth.

The Group recorded strong growth in revenue to reach Rs. 11.1 b in Q2 2011 and Rs. 22.0 b for 1H 2011, an increase of 1% QoQ and 9% Year on Year.

Group profitability was founded on a healthy momentum in EBITDA growth with Q2 2011 EBITDA recorded was Rs. 3.8 b , an increase of 7% QoQ. Group EBITDA for 1H 2011 posted Rs. 7.3 b up 3% compared to the corresponding period in 2010.

Group Net profit for Q2 2011 was Rs. 1.4 b, up 19% QoQ. Net Profit for 1H 2011 was recorded at Rs. 2.5 b up 22% Year on Year. Financial outcomes at Group level were driven by strong performance across the company and its subsidiaries. Bolstered by a circa 7 m mobile subscriber base, EBITDA at company level increased by 7% QoQ to reach Rs. 3.5 b in Q2 2011.

Company EBITDA for 1H 2011 however showed contraction by 4% Year on Year, due to an 18% increase in operating costs.

Cost expansion is attributable in the main to revenue linked costs associated with international origination and Domestic Interconnection charges.