It reported 6% year-on-year growth of revenue during the 1st quarter 2014, to Rs. 15.3 billion. The growth was contributed by all the operational segments of the group. Operating Cost of the group was up by 13% Year on Year (YoY) to Rs. 11.1 billion. Rs. 673 million charged to the operating cost, resulting from an out of Court Settlement of a civil litigation in relation to import IPTV system in 2007/ 2008, has largely contributed to the operating cost increase.
Group EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) margin was dipped to 27% during the quarter under review which was mainly driven by the impact of operating cost increase as stated above together with inflationary factors. During the 1st quarter 2014 operating profit of the group dipped by 50% YoY to Rs. 810 million resulting from increase of operational costs and depreciation. Depreciation of the group during the 1st quarter 2014 increased by 12% compared to the corresponding period of the previous year to Rs. 3.2 billion resulting from re-instatement of fully depreciated assets in line with IFRS and new addition to the fixed assets.
The period dropped YoY by 52% and 66% respectively to Rs. 984 million and Rs. 547 million resulting from the above mentioned operating cost and depreciation increase. It was also impacted by Rs. 240m refund of TDC (Telecommunication charge) reported during the corresponding period of Year before.