Dialog Telekom PLC’s performance strengthened in the third quarter of 2009, improving its normalized operating profit (EBITDA) by 11% quarter on quarter to reach Rs.2.35 billion.
In a press release this week, Dialog said it recorded a robust 29% EBITDA margin with commensurate improvement in the company’s operating cash flow. EBITDA inclusive of non-recurring charges was recorded at Rs.2.27 billion, up 38% relative to the preceding quarter. Non-operating costs excluding non-recurring charges totaled to Rs.1.98 billion, a decrease of 6% on a quarter on quarter basis, mainly attributable to de-scaling of depreciation following the network modernization exercise accounted for in the previous quarter.
During the third quarter of 2009, Dialog continued to register positive gains in the mobile market on the backdrop of aggressive price competition, the press release stated. The company added 336,250 new subscribers during the quarter, increasing its subscriber base to 6.33 million, representing a 27% growth year on year and a 6% growth relative to the second quarter of 2009. Dialog said its total operating costs reduced by 1% quarter on quarter and by 4% relative to the first quarter of the year, reinforcing the efficacy of strategic cost rescaling activities undertaken by the company over the previous quarters.
Dialog recorded a net profit after tax (NPAT), inclusive of non-recurring charges of Rs.313 million. Normalized NPAT was recorded at Rs.370 million compared to the normalized figure of negative Rs.5 million recorded in the previous quarter.
The press release stated that Dialog Group performance, derived from the consolidation of the company with its subsidiaries Dialog Television (DTV) and Dialog Broadband Networks (DBN), recorded a consolidated revenue of Rs.8.94 billion for the third quarter of 2009, an increase of 2% relative to the adjacent quarter and a decline of 5% year on year. Inclusive of subsidiary performance, normalized Group EBITDA improved by 10% quarter on quarter to Rs.2.29 billion.
Group profit after tax inclusive of all non-recurring charges was recorded at negative Rs.439 million for the quarter with a cumulative Group NPAT being negative Rs.9.97 billion for the 9 months ended 30 September 2009. Group profit after tax for the third quarter was negative Rs.198 million, a 66% improvement on a quarter on quarter basis.
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