Sri Lankan GSM operator Dialog Telekom achieved a 29% year-on-year increase in its subscriber base to reach a total of 5.5 million mobile customers at the end of 2008, but incurred an annual net loss of LKR388 million (USD3.4 million), the company reported in a statement to the local stock exchange. The island’s largest cellco by subscribers said that investments made to expand and improve coverage, capacity and quality of service caused total group costs to rise by 40%, including non-operating costs, as finance costs jumped 233% and depreciation climbed 81%, year-on-year. Cellular revenues for the year grew by just 1% compared to 2007, to LKR33.1 billion, following successive reductions in mobile call charges. Consolidated group revenues, including Dialog Broadband Networks (DBN) and Dialog Television (DTV), reached LKR36.2 billion, up 6% y-o-y, as DBN added over 175,000 CDMA and broadband subscribers in the year whilst DTV signed up 122,000 new pay-TV customers. Group twelve-month EBITDA declined by 44% to LKR7.8 billion. Negative contributions from DBN and DTV of LKR1.5 billion and LKR934 million respectively resulted in a group net loss of LKR2.9 billion.