SLT group profit after tax grows 42% to Rs 1.3 b in 1Q, 2006

Sri Lanka Telecom (SLT) has recorded a Group profit before tax of Rs. 2.1 billion during the first quarter of 2006 which is a 70% increase compared to the same quarter of the last year. The after tax group profit for the quarter was Rs. 1.3 billion. This is a 42% increase quarter on quarter basis compared to 2005. SLT has reached this level after achieving a group turnover of Rs. 9.65 billion, which is a 28% or Rs. 2.13 billion increase compared to the same quarter of 2005.

Sri Lanka Telecom Ltd. recorded a turnover of Rs. 8.6 billion, which is 25% or Rs. 1.7 billion increase compared to the same quarter of 2005. This increase has been contributed from local revenue increase by Rs. 1.4 billion or 31%, International Revenue by Rs. 193 million or 11% and other operating revenue by Rs. 131 million or 27%. Increase of local revenue is mainly attributed to Rs. 1.2 billion CDMA new connections. CDMA business came into operation during the last quarter of 2005. All main revenue streams have increased.

The group operating expenditure of the quarter was Rs. 4.2 billion, which is 2 1% or Rs. 735 million higher than the same quarter of the previous year.

The operating expenditure of Sri Lanka Telecom Ltd. was Rs. 3.5 billion which is an increase of 15% or Rs. 466 million compared to the same quarter of 2005. The main reason for the increase was CDMA cost of sales.

SLT's fully owned subsidiary Mobitel has been able to increase its turnover by 56% compared to the first quarter of 2005. The revenue items other than the revenue from sale of hand sets have increased.

The increase of operating expenditure was 60% and it was mainly derived from sales and distribution expenses and currency devaluation.