Dialog Telekom profits soar

Dialog Telekom and its subsidiaries last week reported a post-tax profit of Rs. 7.55 billion for the nine months ended 30 September 2006.

Dialog alone recorded post-tax profits of Rs. 7.46 billion, up 45 per cent from the same period in 2005. Its subsidiaries are Dialog Broadband Networks (Pvt) Ltd and Asset Media (Pvt) Ltd).

The company said the nine-month period featured a significant downward revision of tariffs – over 30 percent -- thereby enhancing the affordability of the company’s telecommunications services to its 2.8 million-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 US$150 million (Rs 15 billion) investment project billed by the Board of Investment as one of the single largest infrastructure investments in 2006.

Total operating revenue increased 44 percent to Rs. 18.50 billion, 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 percent of the company revenue for the nine months ended 30 September 2006.

The company’s cellular subscriber base increased by 47 per cent to 2.84 million subscribers. The prepaid segment increased by 57 per cent from 1.51 million to 2.36 million.