Dialogue dials up growth

Johannesburg, 04 Mar 2008

AltX-listed call centre outsourcer Dialogue Group's 2007 financial year was a period of rapid growth.

Revenue for the 12 months ended 31 December climbed 90%, to R230 million, and net profit rose 35%, to R21 million. However, earnings per share declined 1%, to 7.6c.

"We've grown our core business while preparing it for future growth by further investing in our infrastructure and people. At the same time, we have achieved our aim of broadening our client offering through a number of acquisitions in outsourced call centre services. Through these acquisitions, we are both strengthening links with existing clients and achieving economies of scale," says Dialogue CEO Jason Drew.

Commentary in the results reveals revenue from its call centre business increased by 63%, compared to the previous year, and new subsidiaries added another R37 million to income.

Dailogue's gross margin from its call centre business dropped from 43% to 32% due to the effect of a tighter credit environment on outbound business, investment in training and learnerships. The margin on international business was stable and revenue from overseas clients increased by 191% compared to the previous year.

The company says its prospects for the 2008 financial year are good.

Drew explains: "We expect a period of very strong growth not only locally, but also internationally where the economic uncertainty has prompted strong new interest in the cost-saving benefits of outsourcing to SA."