Dialog Axiata PLC recorded a net loss of Rs.531 million in the first quarter ending March 31, 2012 against a net profit of Rs.1 billion in the corresponding quarter of the previous year.

According to the financials released by Dialog, the finance costs of the group has risen to Rs.2.2 billion during the quarter under consideration from Rs.50 million in the corresponding quarter and the main reason behind the loss was foreign exchange loss of Rs.2.1 billion incurred on the US dollar borrowings taken by the group.

"The depreciation of the SLR relative to the USD by 12.4% QOQ, resulted in the provisioning of a non-cash translational foreign exchange loss of Rs.2.1 billion, leading to the Dialog group recording a net loss of Rs.531 million for Q1 2012," a statement issued by the Dialog Axiata said.

It also said the loss is partly also due tot he acquisition of Suntel Limited, by DBN, a subsidiary within the Dialog group.

Despite the exchange loss, Dialog's consolidated revenue during 1Q12 rose 18 percent yearon-year to Rs.12.9 billion, driven by healthy growths in segmental revenues pertaining to mobile, international, pay-tv and teleinfrastructure businesses of the group.

Dialog's pay-tv operations continued its positive growth trajectory with revenue recorded at Rs.677 million for Q1 2012, registering growth of 22 percent relative to Q1 2011. EBITDA for Q1 2012 was posted at Rs 181 million, an increase of 38 percent relative to Q1 2011.

Dialog pay-tv’s EBITDA however exhibited contraction of 8% on a QOQ comparison, due to significant inflation with respect to energy costs and foreign exchange denominated inputs such as television channel content and Satellite transponder costs.

“Downstream of healthy EBITDA performance, DTV recorded positive PAT for the second consecutive quarter. DTV PAT for Q1 2012 was recorded at Rs.37 million,” the statement said.

DBN, featuring Dialog’s fixed telecommunications business continued to consolidate its

performance with revenue for Q1 2012 recorded at Rs 609 million, registering a 4 percent growth relative to Q1 2011.

DBN’S EBITDA was recorded at Rs.180 million in Q1 2012, an increase of 26 percent relative to Q1 2011. DBN EBITDA however exhibited contraction of 14% on a QOQ comparison, due to significant inflation with respect to energy costs and network operating inputs.

Downstream of healthy EBITDA performance, DBN recorded a net loss of Rs 147 million in Q1 2012, however, an improvement of 25% relative to Q1 2011.

Group capital expenditure for Q1 2012 amounted to Rs,1.7 billion and was directed towards strategic investments in high speed broadband and optical fibre network expansion projects, and the expansion of mobile telephony and high speed mobile broadband services to meet growth in subscriber demand across the Group’s island wide network footprint.