Dialog Telekom announced company and group level profit increases for the quarter ending March 31, x2010 as company net profit increased by 313% to Rs.1,276 million and group profit increased by 153% to Rs.705 million compared to the corresponding period in 2009. In a statement released last week, Dialog said it continued to register positive gains in the mobile market during the quarter under review, on the backdrop of aggressive competition.
Company revenue grew by 15% year on year and 2% compared to the fourth quarter of 2009. Dialog said revenue growth for the current period was driven by the addition of 364,809 (net) new subscribers and grew its subscriber based to 6.74 million recording a 15% subscriber growth year on year and a 6% growth relative to the fourth quarter of 2009.
The company’s operating costs decreased by 13% and 2% relative to the first quarter of 2009 and the fourth quarter of 2009 respectively. Dialog said this signifies the quantum impact of strategic cost rescaling initiatives it undertook during the previous quarters.
Operating cost improvements were driven primarily by the reduction in operational overheads, administration and manpower related expenses.
Direct costs grew by 3% year on year and 6% quarter on quarter, mainly due to termination and origination costs pertaining to international traffic in line with revenue growth accruing from the corresponding lines of business.
Group performance, derived from the consolidation of company performance with that of its subsidiaries, Dialog Broadband Networks (Pvt) Ltd. and Dialog Television (Pvt) Ltd, featured group revenue of Rs.9,791 million for the period under review.
This indicates a revenue increase of 16% year on year and 2% relative to the fourth quarter of 2009. Dialog said cost rescaling initiatives during the course of 2009 demonstrated robust impact at group level with group operating costs decreasing by 13% in comparison to the fourth quarter of 2009.