Dialog Enterprise has tied up with software firm IornOne Technologies to offer enterprise specific mobile devices apps (applications) which will allow users to accelerate and simplify the business process system to save time and money.

These enterprise specific business apps for smart phones and tablets offered by Dialog Enterprise, the corporate solutions arm of Dialog Axiata PLC is developed by software developer IronOne Technologies.

The mobile apps allow users to simplify the business process output which in turn would help to achieve faster, more efficient and a convenient method of information updates, leading to saving time, money and faster ways of servicing its’ customers.

The apps that are currently offered include Board Approval (Board App), Agent Automation (SalesOne App), Vehicle Accident Claim Assessment (ClaimOne App) and Hospitality Solution (HotelOne App). SalesOne App gives the ability to perform online sales updates. ClaimOne App allows insuarance company assessors to submit insurance claims information on the spot in script less form without the hassle of submitting claims in paper format. HotelOne App makes hospitality sector more customer centric by providing hotel services via smart devices such as iPads. Board App provides the flexibility of having board meetings fully online without any paper distribution and has already seen a large uptake by many companies in a diverse range of industries.

Lakmini Wijesundera, the CEO, Asia Pacific of IronOne Technologies stated “we look forward to working with Dialog to deploy Enterprise Mobility solutions in Sri Lanka. It is a global trend and Sri Lanka has been an early adopter of emerging technologies throughout history and one such example to quote is Sri Lanka being the first country in South Asia to commercially launch 3G. The Global trends show that smartphone device sales have surpassed PC sales, which clearly indicates the tremendous demand for smart devices even at present.”

She further added “iPads and Android tablets devices along with other smartphone and tablets has the ability to take enterprise productivity to another level. We are helping companies to take advantage of this revolutionary productivity improvement.”

Dialog Axiata, with over 2,000 2G and 1,200 3G base stations is Sri Lanka’s largest mobile service provider with over 7 million subscribers and is the leading mobile operator in enterprise business solutions.

“The strategic partnership with IronOne Technologies will help Dialog Enterprise to deliver the latest in business solution apps to subscribers,” Sandra De Zoysa, Group Chief Officer at Dialog Enterprise and Service Delivery said. “Business apps give users instant service without the delays and hassle experienced in the traditional paper trail processing system.”

Ironone Technologies is a leading enterprise and mobile solutions company with offices in Texas USA and Colombo Sri Lanka. Ironone’s offers services to a global clientele both in USA and in Asia Pacific regions. The lronOne clientele includes fortune 100 companies in USA.

Dialog Enterprise, the corporate solutions arm of Dialog Axiata PLC successfully commissioned an integrated communication solution to enable Road Development Authority (RDA) to start operations of Sri Lanka’s first expressway with a very high note.

The solution provided by Dialog Enterprise enabled real time ticket transactions at all entry/exit points in the highway with secure and faster connectivity being provided using a mobile access point network solution (APN) branded as Dialog BizConnect. With this solution all Point of Sales (POS) machines are interconnected to the central server system hosted at the Dialog data centre. The state of the art solution provided by Dialog Enterprise would allow officials at RDA to get real time updates on information such as number of vehicles entered, revenue generated from each exit points and the registration numbers of vehicles that have entered or exited the newly opened Southern Expressway. Dialog enterprise partnered with Access Telecommunications Services (Pvt) Ltd (ATSL) which provided the required application platform and POS machines.

Dialog Enterprise also provides mobile and data communication facilities for all the operational staff of southern highway as Dialog has strong coverage throughout. Also, Dialog provides web hosting solution for the highway enabling the public to access information online.

The 95 kilometre picturesque expressway, built at a cost of approximately 600 million dollars connects Kottawa, suburb of Colombo to the southern city of Galle, with multiple entry/exit points along the way. The highway cuts down travelling time by 60 percent versus the old coastal road which takes over three hours to cover the 120 kilometers to Galle.

“We are pleased to enter into a strategic partnership with the RDA on Sri Lanka’s first toll expressway,” Sandra De Zoyza, Group Chief Officer for Enterprise and Service Delivery said. Dialog Enterprise offers the latest and the best in the world ICT (Information Communication technology) solutions that offer real time updates which is crucial in today’s complex and fast paced economy.

Dialog Axiata, with over 2,000 GSM and 1,200 3G base stations and growing is the largest mobile service provider and one of the largest ICT based solutions providers in the Island.

The Group recorded strong revenue growth across all segments to reach Rs 11.9billion for the 4th Quarter, a QoQ growth of 3%. Group Revenue grew 10% YoY to be recorded at Rs 45.6billion for FY 2011.

Revenue growth in combine with continued operational improvements lead to the Group posting a healthy 9% QoQ growth in EBITDA with Q4 2011 EBITDA being recorded at Rs 4.7billion, inclusive of Rs 311million accruing from the recognition of Telecommunication Development Fund reimbursement from the TRCSL. The Group EBITDA margin grew by 2 percentage points on a QoQ comparison to reach 40% for the 4th Quarter. Group EBITDA for the FY 2011 was recorded at Rs 16.4billion up 9% compared to the corresponding period in 2010 and featured an EBITDA margin of 36%.

Group net profit for Q4 2011 was posted at Rs 1.4billion, up 2% QoQ. Net profit for the FY 2011 was recorded at Rs 5.4billion, up by 6% YoY. Growth in Group profitability was achieved on the
backdrop of substantial Foreign Exchange (translational/non-cash) losses totaling to Rs 638million resulting from the devaluation of the Sri Lanka Rupee (SLR) in the 4th Quarter.

Financial outcomes at group level were driven by strong operational performance across the Company and its subsidiaries. The Company, featuring Mobile, International and Tele-Infrastructure businesses continued to leverage its market leading position to deliver strong growth in revenue and profitability. The Company recorded revenues of Rs 10.9billion and Rs 41.8billion for Q4 and FY 2011 respectively. Company revenue grew by 2% QoQ and 10% YoY. Costs at company level grew by 13% YoY. Cost expansion is attributable in the main to revenue linked costs associated with International origination, roaming, domestic Interconnection charges and escalation in network operating costs in line with the aggressive expansion of the Company’s 2G and 3G infrastructure footprint. Cost escalation was further influenced by the impact of non-recoverable VAT expenditure, in light of changes in the VAT environment applicable to the telecom industry since January 2011.

Notwithstanding revenue linked cost expansion, EBITDA at company level increased by 6% QoQ (inclusive of the recognition of TDF reimbursement) to reach Rs 4.3billion in Q4 2011. The Company’s EBITDA margin improved by 2 percentage points QoQ, to reach 40%. Company EBITDA was recorded at Rs 15.2billion for the FY 2011 featuring an EBITDA margin of 36% for the full year. On the backdrop of robust EBITDA performance, Company PAT was recorded at Rs 1.7billion in Q4 2011. Notwithstanding the growth in EBITDA performance, Company PAT (recorded at Rs 6.3billion) contracted by 4% relative to the corresponding period in 2010. PAT contraction on an YoY basis was due in the main to a Foreign Exchange (translational/noncash) loss of Rs 502million in contrast with the foreign exchange gain of Rs 686million recorded in the previous year, reflecting an adverse change of Rs 1.19billion YoY with respect to Foreign Exchange translation recognition.

Dialog Television (DTV) continued its growth momentum recording YoY revenue growth of 18% to reach Rs 2.4billion for FY 2011. EBITDA for Q4 2011 was posted at Rs 197million and Rs 574million for FY 2011, an improvement of 67% QoQ and 68% YoY respectively. DTV PAT crossed over in to positive terrain for the first time in Q4 2011, recoding a bottom line of Rs 49million for Q4 2011 and Rs 26million for FY 2011. PAT turnaround at DTV was underpinned by an aggressive increase in subscriber base and revenues.

Dialog Broadband Networks, featuring Dialog’s fixed telecommunications business continued to consolidate its performance with revenue for the FY 2011 recorded at Rs 2.4billion a 1% growth YoY. DBN EBITDA was recorded at Rs 209million in Q4 2011 and Rs 665million for the FY 2011, a significant improvement of 36% QoQ and 133% YoY respectively. Despite healthy EBITDA growth, PAT was recorded at negative Rs 287million in Q4 2011 down 12% QoQ, due in the main to the application of exceptional depreciation charges with respect to capital inventory applicable to the company’s WiMAX network. The said charges are in line with the WiMAX network being rendered fully depreciated by the end of FY 2011. Notwithstanding the exception based contraction of net profitability position in the 4th Quarter, PAT for the full year improved by 27% YoY albeit remaining dilutive to the Group at negative Rs 945million.

The Group continued to make aggressive investments towards expanding its nationwide ICT infrastructure footprint and the application of cutting edge technology across its mobile, fixed and broadband businesses. Group Capital expenditure for the FY 2011 amounted to Rs 8.7billion. Capital expenditure was directed in the main towards strategic investments in High Speed Mobile Broadband and Optical Fibre Network (OFN) expansion projects, in addition to the aggressive expansion of its Mobile Telephony services to meet growth in subscriber demand across all provinces of the country.

On the backdrop of robust EBITDA performance, the Group continued to record positive Free Cash Flows (FCF) for the eighth consecutive quarter, with Q4 2011 FCF being recorded at Rs 2.7billion. In line with the generation of healthy free cash flows, Dialog Group continued to maintain a structurally robust balance sheet with the Group’s Net Debt to EBITDA ratio improving from 1.41x in 2010 to 0.78x as at end of 2011.

Proposed Dividend FY 2011

Taking in to account the healthy cash position of the Group and investment requirements stemming from growth opportunities going forward, the Board of Directors of Dialog Axiata, resolved, to propose for consideration by the Shareholders of the Company, a cash dividend to ordinary shareholders amounting to twenty five cents (Rs 0.25) per share totaling to Rs 2.0billion. The said dividend, if approved by shareholders would translate to a pay out of 39% of consolidated group profits after preference dividend for the FY 2011. The dividend so proposed will be considered for approval by the shareholders at the Annual General Meeting (AGM) of the Company, the date pertaining to which would be notified in due course.

“Our own Mr. Muthiah Muralidaran bowls yet another Innovation for the development of Cricket in the country , compatible to his unparalleled cricketing achievements”

CricHQ, a New Zealand based technology company is offering a smart phone and tablet compatible cricket scoring app (application) exclusively to Dialog customers, which will allow subscribers to use cricket scoring, coaching and tracking tools free of charge.

The Dialog CricHQ scoring app is currently available for download on Apple devices and soon will be available on the Android platform as well. Dialog CricHQ allows users to get ball by ball updates of cricket matches from anywhere in the island be it from the grandstands to grassroots of the game via its application or website absolutely free.

You can also view live scorecards and the app allows you to follow live matches from your favorite international sides, your local club team and your children’s school team from anywhere.

Every match available will also allow for a calculation of MVP (Most Valuable Player) points that were previously only available at the elite level of the sport, giving the players the opportunity to compare themselves to their heroes.

The Dialog CricHQ app also allows users to easily capture 3D wagon wheels for batting stats, similar to what is shown on television when international cricket matches are played. This groundbreaking app allows users to go back and review scores and batting patterns.

All match and player details that are available on Dialog CricHQ application will also be available live ball by ball online at www/crichq.com/srilanka.

“Mobile technology is the natural extension from the existing broadcast and online media and Dialog Axiata is proud to be associated with a sport that has a rich history in Sri Lanka,” Kavan Ratnayaka, Chief Corporate Officer at Dialog Axiata PLC said.

“As Sri Lanka’s leading mobile services provider it is our philosophy to serve the ardent fan wherever he or she is and apps like Dialog CricHQ make this possible.”

Msports (Private) Limited, the company of spin legend Muttiah Muralitharan has been appointed as the exclusive agent for CricHQ in Sri Lanka and is also part of the international CricHQ team.

CricHQ was established by New Zealand businessman Simon Baker with the help of two of the biggest cricketing names to come out of New Zealand Cricket, Stephen Fleming and Brendon McCullum.

100 iPads were gifted to leading Sri Lankan schools and clubs by Dialog and Msports at the launch event held recently. This will enable these clubs and schools to immediately start using the application. Dialog CricHQ will also be providing clubs and schools the training required to operate the application.

“The application will allow fixtures of all local matches and players to be featured in the same context as that of international matches,” Muttiah Muralitharan, Chairman of Msports said. “We are proud to partner with an innovative organization like Dialog Axiata PLC and look forward to working with them on an ongoing basis to make Dialog CricHQ the most popular sports app in Sri Lanka.”

Dialog Axiata is Sri Lanka’s largest mobile service provider with over 7 million subscribers and a growing base of over 2,000 2.5G and 1,200 3G base stations.

HR Application Suite with Microimage HCM

Dialog HRPal to be the first cloud based human resource application offered in Sri Lanka

Dialog Enterprise, the corporate solutions arm of Dialog Axiata PLC is offering Sri Lankan enterprises, solutions on a SaaS (Software as a Service) platform, which it says can bring considerable cost savings to organizations that otherwise have to use licensed business application software.

SaaS (Software as a Service) platform provides users access to software and its functions remotely as a web-based service, allowing organizations to access business functionality at a lower cost than licensed applications.

Unlike traditional solutions which require a licensing fee, a SaaS Solution platform only requires users to pay a monthly subscription fee for the use of the software. Further users don’t have to bear the cost for daily upkeep, maintenance or installation. The web based tool will be priced based on parameters such as the number of employees using the application.

Dialog HRPal, will be the first SaaS enabled business tool offered to Sri Lankan small & medium (SME) businesses by Dialog Enterprise. It is offered in conjunction with Microimage, a leading specialist in HR products in Sri Lanka and the designer and developer of Dialog HRPal, making it a truly Sri Lankan product. The online based management tool helps organizations manage and plan their HR (Human Resource) functions at a fraction of the cost.

“Dialog Enterprise partnership will enable us to offer the number 1 HCM product in Sri Lanka to SME’s bundled together with Dialog’s enterprise services. We look forward to working closely with Dialog Enterprise team to offer a unique value proposition to SME clients,” Suren Rupasinghe, Head of HCM Business for Microimage said.

Using Dialog HRPal offers significant advantages to clients as it requires a shorter deployment time, lower costs, painless upgrades, higher economies of scale and hassle free maintenance. It manage employee profiles; track employee career progression; streamline time & attendance together with integrated payroll administration; complete employee self service capabilities, training management; performance management and provide business intelligence to all levels of management for effective people centric decision making.

“In developed markets SaaS Solutions are gaining popularity due to cost leadership, flexibility and 24/7 support services offered by web based emerging technologies,” Suresh Sidhu, Group Chief Officer for Enterprise and Global Business at Dialog Axiata PLC said.

“In future we are committed to expand the number of products and services offered by SaaS to corporate entities in Sri Lanka.”
Dialog Axiata, with over 2,000 GSM and 1,200 3G base stations and growing is Sri Lanka’s largest mobile service provider.

Dialog Enterprise to provide a Complete Mobile Connectivity Solution to Edna Group

Edna Group of Ceylon, one of the largest conglomerate’s in Sri Lanka has tied up with Dialog Enterprise to provide mobile communication solutions to the group, which includes Dialog BizConnect; an APN (Access Point Network) solution, allowing sales teams to give real time updates from the field.

Dialog BizConnect APN (Access Point Network) Solution by Dialog Enterprise, the business solutions arm of Sri Lanka’s premier mobile service provider Dialog Axiata PLC will enhance productivity and efficiency of organizations by giving real time updates from the field, while on the go. Dialog BizConnect allows real time sales updates from across the Island and also allows optimum cost leadership in other business support services like inventory management and dispatch services paving the way for better resource management with the organization.

This agreement also covers a complete mobile voice and BlackBerry solution system which will allow the Edna Group management and staff to have seamless voice and data communication services powered by Dialog’s island wide coverage. The new solution further includes an online billing monitoring portal which enables the tracking of billing and usage patterns and report generation. As such, the solutions that are implemented at Edna Group by Dialog Enterprise will help reduce costs and increase operational efficiencies of the company.

“As Dialog Axiata is a leader in innovation and also has the largest geographical coverage in Sri Lanka, they were naturally the first choice for Edna,” Mr. Lal Ekanayake, Group Director at Edna Group of Companies said. “The solutions offered by Dialog Enterprise leads to costs savings to the Edna Group which is essential to stay ahead of the curve in today’s fiercely competitive market.”
Dialog Axiata, with over 2,000 GSM and 1,200 3G base stations and growing is the largest mobile service provider and one of the largest ICT based solutions providers in the Island.

“We are pleased to enter into a strategic business venture with the Edna Group, one of the largest conglomerate’s in Sri Lanka,” Suresh Sidhu – Group Chief Officer, Dialog Enterprise and Global Business said.

“Dialog Enterprise is committed to provide the Sri Lankan corporate sector with the latest in ICT (Information Communication Technology) tools that offer real time updates which is critical in today’s fast paced economy”.

Suntel commandeers a premium position in Sri Lanka’s fixed telecommunications sector and is ranked second in the sector in terms of fixed telecommunications business and Revenue Market share. Suntel commenced operations in 1996 and is currently a subsidiary of Swedish telecom operator Overseas Telecom AB. Other shareholders of Suntel include NDB (National Development Bank PLC), C-Tech Investments (Private) Ltd, Kelmarsh Investments Ltd, Townsend Limited and International Finance Corporation (IFC).

“The Sri Lankan telecom sector after 15 years of robust growth is soliciting consolidation,” Jerry Huxtable, Managing Director of Suntel said. “Suntel is committed to providing a superior service to our loyal customer base, and today are at a point in our evolution where bullish and forward thinking investments are needed to elevate our broadband infrastructure to best in class standards.”

“I believe industry consolidation which crystallises economies of scale and brings together the shared effort and investment capacity of leading industry players is an optimum strategy to deliver enhanced value to consumers and the industry at large going forward. The agreement entered in to by our shareholders with DBN paves the way for a renewed thrust of investment in Sri Lanka’s fixed telecommunications and broadband sector which I believe will be of benefit to all stakeholders.”

Suntel’s fixed telecommunications infrastructure is based on a 382 base station strong network delivering fixed voice, broadband and data communication services using CDMA, WiMAX and other fixed wireless access technologies.

DBN, a fully owned subsidiary of Dialog Axiata PLC, was the 4th entrant to Sri Lanka’ fixed telecommunications sector in 2006 and has since consolidated a robust and rapidly growing position in the sector based on its portfolio of fixed telecommunications, broadband and optical fibre based transmission infrastructure services. Since becoming a member of the Dialog Axiata Group in 2006, the company has invested Rs 11.8Bn in the expansion of its fixed telecommunications and broadband infrastructure with a particular focus on the development of its optical fibre network which is being rolled out on a nationwide basis.

The share purchase agreement signed between DBN and the shareholders of Suntel envisages the transaction to be completed at an EV (Enterprise Value) in the range of USD 33.9Mn to USD 34.9Mn, corresponding to a Valuation Multiple of 3.0x- to 3.1x of FY10 EBITDA, subject to the outcome of confirmatory business valuation and due diligence during the period leading up to the completion of the transaction. The transaction, leading ultimately to the merger of Suntel with DBN will secure the distinction of being the single largest consolidation initiative within Sri Lanka’s Telecommunications sector. Following the entering in to of the SPA, parties to the transaction expressed their appreciation for the facilitation and enablement received from the Telecommunications Regulatory Commission of Sri Lanka, the Board of Investment and agencies of the Ministry of Finance, and also for the execution support extended by advisors J.P. Morgan, MacQuarie Capital, Mannheimer Swartling, F.J. & G. De Sarams, Dr Shivaji Felix, John Wilson and escrow agents Standard Chartered Bank PLC.

Chairman of Dialog Broadband Networks and Group Chief Executive at Dialog Axiata PLC Dr. Hans Wijayasuriya commenting on the transaction said, “We are indeed privileged to have been afforded the opportunity to combine with Suntel through this beachhead industry consolidation initiative. Going forward, the combined strengths of DBN and Suntel will be synergised towards establishing a best in class infrastructure platform for the provision of high quality fixed telecommunications and broadband services which are expansive in their availability, and inclusive in terms of affordability to Sri Lankan citizens.”

“Our combined efforts will be focused on supporting the aspiration of the Government of Sri Lanka to enhance the affordability and availability of high quality broadband services. Accordingly, our expansion plans for the fixed telecommunications sector will target the establishment of an infrastructure and service proposition which is based on advanced technology, robust infrastructure featuring our rapidly expanding fibre optic network and excellent customer service. Suntel is a much admired service provider on Sri Lanka’s telecommunications landscape and will bring to the merger, very significant value in terms of a best in class fixed line operations framework, highly competent human capital and a longstanding customer base earned and retained through an impeccable record in service delivery. Through the combination of our strengths, we look forward to providing our mutual customers with unparalleled value and quality of service as we enter an exciting new era of broadband centric telecommunications development” Dr Wijayasuriya added.

As disclosed in a recent release of Financial Results of the Dialog Group for the 9 months ending September 2011, Dialog Broadband Networks reported Revenues and EBITDA of Rs 1.8Bn and Rs 456Mn respectively for the period under review. The combined operations of Suntel and DBN are accordingly envisaged to crystallise the formation of a strong second ranked player in the fixed telecommunications sector with a combined Revenue and Subscriber Market share of approximately 16% and 23% respectively.

Dialog Enterprise, the corporate business solutions arm of Dialog Axiata has opened a state-of-the-art demonstration and interaction center named as Dialog Enterprise Discovery Centre which will be a conduit to showcase the latest enterprise services and solutions provided to corporate customers. Also it acts as an incubation gallery where latest communication technologies are introduced with prototype displays.

The Enterprise Discovery Centre is situated at Dialog Future World, 338, T B Jaya Mawatha, Colombo 10. The centre, which opened in September 2011, showcases mobile and fixed enterprise solutions that would give our clients a competitive edge in their business.

In addition, the Enterprise Discovery Centre hosts Sri Lanka’s only public video conferencing room which is a state-of-art Video Conferencing facility with high speed global connectivity. This room can be rented out on an hourly basis by customers, saving time and costly international travel.

“We opened the Dialog Enterprise Discovery Center this year to keep with our brand promise of the Future Today,” Suresh Sidhu, Group Chief Officer for Enterprise and Global Business at Dialog Axiata PLC said.

“The Dialog Enterprise Discovery Centre will enable customers to experience future technologies that are applicable today, giving customers hands on experience . The Centre will host interactive work shops with corporate clients to closely indentify growing demands of top corporate clients in order to provide them with tailor made solutions.

Enterprise visitors could experience the latest 4G services, NFC (Near Field Communication) based solutions, latest smart devices such as tablets,Smart phones and wifi devices.
Some of the mobile enterprise applications offered by Dialog Enterprise include, Asset tracking solutions, Dialog BizConnect, 3G Backup, NFC based touch Corporate Fuel Card, Dialog Wi-Fi, Dialog Blackberry Solutions, CCTV Tracking and Surveillance, Dialog Satnav and Smartphone Applications.

Dialog Enterprise also offers fixed enterprise solutions such as Standard Fixed Telephony, Direct CO lines, E1/PRI Connectivity, SIP trunking, IP (Internet Protocol) Telephony and Hosted PABX, Hosted Call Center Solutions, Wireless PABX and Conferencing Solution

Corporate clientele can request for full or specific solutions based demonstrations by dropping a request to dialogenterprise@dialog.lk

Dialog Axiata, with over 2,000 GSM and 1,200 3G base stations and growing is Sri Lanka’s largest mobile service provider.

The Group recorded strong revenue growth across all segments to reach Rs 11.6billion for the 3rd Quarter. Group Revenue for the nine months ending 30th September 2011 was recorded at Rs 33.7billion, delivering growth of 5% QoQ and 10% YoY.

Revenue growth in combine with effective cost management lead to the Group posting a healthy growth in EBITDA with Q3 2011 EBITDA being recorded at Rs 4.3billion, inclusive of the recognition of Rs 342million pertaining to Telecommunication Development Fund refunds from the TRCSL accordingly, EBITDA increased 14% QoQ. The Group EBITDA margin grew by 2 percentage points on a QoQ comparison to reach 37% for the 3rd Quarter. Group EBITDA for the 1st nine months of 2011 was recorded at Rs 11.7billion up 5% compared to the corresponding period in 2010 featuring an YTD EBITDA margin of 35%. Group net profit for Q3 2011 was posted at Rs 1.4billion, up 1% QoQ. Net profit for the 1st nine months of 2011 was recorded at Rs 3.9billion, up by 4% YoY.

The positive performance trajectory at Group level was underpinned by robust growth in the Group’s core mobile business as reflected in the financial performance of the Company.

On the strength of a 7 million strong mobile subscriber base, Company Revenue grew by 5% QoQ to reach Rs 10.7billion. Company revenue for the nine months ending 30th September was recorded at Rs 30.9billion, up 10% relative to the corresponding period in 2010.

Company costs grew by 16% YoY. Cost expansion at company level is attributable in the main to revenue linked costs associated with International origination and Domestic Interconnection Charges, and escalation in network operating costs in line with the aggressive expansion of the Company’s 2G and 3G infrastructure footprint. Cost escalation YTD was further influenced by the impact of non-recoverable VAT expenditure, in light of changes in the VAT environment applicable to the telecom industry since January 2011.

Notwithstanding revenue linked cost expansion, EBITDA at company level increased by 15% QoQ (inclusive of the recognition of TDF refunds) to reach Rs 4.1billion in Q3 2011.The Company’s EBITDA margin improved by 3 percentage points QoQ, to reach 38%. Company EBITDA was recorded at Rs 10.9billion for 1st nine months of 2011 and featured an EBITDA margin of 35% YTD.

On the backdrop of robust EBITDA performance in the 3rd Quarter, Company PAT grew by 3% QoQ to be recorded at Rs 1.7billion in Q3 2011. On an YoY basis, flat EBITDA performance in combine with increased depreciation charges, lead to YTD NPAT (recorded at Rs 4.6billion), exhibiting negative growth of 7% relative to the corresponding period in 2010.

Dialog Television (DTV) continued its positive growth momentum recording YoY revenue growth of 13% to reach Rs 1.7billion for 1st nine months of 2011. EBITDA for Q3 2011 was posted at Rs 118million and Rs 377million for the 1st nine months of 2011. On an YoY comparison, DTV EBITDA improved 182% relative to the corresponding period in 2010. The DTH Pay Television subscriber base increased by 32% relative to the corresponding period in 2010 to surpass the 200,000 subscriber milestone during the 3rd Quarter.

Dialog Broadband Networks, featuring Dialog’s fixed telecommunications business continued to consolidate performance trends of the previous quarters, to record its sixth successive quarter of positive EBITDA in Q3 2011. DBN EBITDA was recorded at Rs 154million, a 3% decrease on a QoQ basis. EBITDA for 1st nine months of 2011 however exhibited positive growth with YTD EBITDA growing 175% YoY to be recorded at Rs 456million. DBN remained PAT dilutive in Q3 2011 on the backdrop of the application of aggressive depreciation charges accruing from the accelerated amortization of its CDMA and WiMAX networks.

The Group continued to make aggressive investments in consolidating its leadership in terms of nationwide ICT infrastructure footprint and the application of cutting edge technology across its mobile, fixed and broadband businesses. Group Capital expenditure for the nine months ending 30th September 2011 was recorded at Rs 6.7billion. Capital expenditure was directed in the main towards strategic investments in High Speed Mobile Broadband and Optical Fibre Network (OFN) expansion projects.

On the backdrop of robust EBITDA performance, the Group continued to record positive Free Cash Flows (FCF) for the seventh consecutive quarter, with Q3 2011 FCF being recorded at Rs 3.2billion. In line with the generation of healthy free cash flows, the Dialog Group continued to maintain a structurally strong balance sheet with the Group’s Net Debt to EBITDA ratio improving from 1.5x as at 30th September 2010 to 0.99x as at the end of Q3 2011.

Stafford Motors, sole authorized distributor in Sri Lanka for Honda Motor Corporation of Japan ties with Dialog Enterprise to provide an integrated communication solution that will enhance productivity of its operations while reducing communication costs.

The new solution provided by Dialog enterprise is a fully converged IP based solution capable of providing both voice and data services using a single network infrastructure.

All the business locations of Stafford Motors will be a part of a centralized voice communication platform based on a next generation (NGN) IP based hosted telephony solution capable of providing a single number centralized call handling and extension dialing between locations.

“Since Dialog was the existing mobile partner we commenced discussions with Dialog to enhance our communication needs for all voice, data and internet needs,” Ms. Sakunthala Dharmathilake – Director HR/Company Secretary of Stafford Motors said.

“Dialog’s rapidly changing and advanced technology solutions backed up by excellent customer service and flexibility prompted us to decide on Dialog for total communications solutions.”
Dialog Axiata, with over 2000 GSM and 1200 3G base stations and growing is Sri Lanka’s largest mobile service provider. The use of Dialog’s platform would give Stafford Motors seamless options to use communication tools in voice and data format.

“The VPN system would standardize data and voice operation providing clients a one stop shop solution for all their communication needs,” Mr. Suresh Sidhu – Group Chief Officer, Dialog Enterprise & Global Business said.

“The new VPN solution would give Stafford Motors a new vista to communicate with internal and external stakeholders more efficiently and faster.”

Stafford Motor is the sole authorized distributor for Honda cars and motorbikes in Sri Lanka since 1983.

Honda is the sixth largest car maker in the world with over 120 billion dollars in global sales in 2010.