SLT ups profits in Q1

The SLT Group consists of parent company Sri Lanka Telecom PLC and seven subsidiaries including the mobile giant Mobitel (Pvt) Ltd.

The Group’s Profit after Tax (PAT) of Rs 1.29 billion in the quarter reflects a 114 percent growth YoY. This substantial increase in profits can be attributed to revenue increase coupled with cost optimization initiatives which have delivered encouraging results in terms of reducing operating expenses.

Group revenue grew to Rs 12.4 billion, with strong performance in Broadband, Data, TV and Mobile Voice, with new connections recording a continuous growth. Reduction in financial charges driven by efficient treasury management was another contributory factor to the favourable results. Significantly, the group’s key performance indicators, such as EBITDA, PBT and PAT margins have sustained positive growth, demonstrating the Group’s agility and passion for performance.

In spite of heavy investments in capital expenditure, the SLT Group recorded a positive free cash follow of Rs 1.03 billion, which reflects the group’s enviable financial fundamentals.

Sri Lanka Telecom (SLT) Chairman Nimal Welgama said SLT shoulders its responsibility pro-actively, constantly striving to position Sri Lanka as the regional leader in the realm of ICT.

At the company level, SLT has recorded significant gains during the first quarter of 2011 due to the wide array of strategic measures taken by the company to add value to its services through innovation and enhanced efficiency.

SLT’s Profit Before Tax (PBT) of Rs 1.29 billion and Profit After Tax of Rs 989mn were 105 percent and 141 percent respectively increased when compared to the corresponding quarter of the previous year. These increases were mainly driven by reduction in expenses due to cost optimization initiatives and reduction in volume driven direct costs. Meanwhile, non-traditional revenue lines such as broadband and data have shown impressive growth.

Mobitel, the Mobile arm of SLT, recorded a profit after tax of Rs 384 mn in 2011 as compared to Rs 204 mn in the corresponding first quarter of 2010. This growth in earnings reflects an 88 percent YoY growth despite formidable challenges faced in a fiercely competitive industry during the period under review. The growth achieved in overall revenue, which increased by over Rs, 600 mn continues to be reflected across profitability indicators with EBITDA and NPAT growing by 8 percent and 88 percent respectively. This was a result of continuous efforts to minimize costs while striving for optimum asset utilization.