SLT Group revenue grows 25% to Rs. 40.7 b in 2006

In 2006, SLT made substantial contributions to the National Exchequer through tax payments of Rs. 3.8 billion and Rs. 2.7 billion paid out in other levies, a media release from SLT said.

The year 2006 was extremely successful for SLT. The progress and strong performance achieved by the Company vindicates the strategies that have been adopted in taking the business forward.

The Group's revenue grew by 25% to reach Rs. 40.7 billion for the year in review. Local telephone services contributed 69% of this revenue, whilst international telephone services accounted for 20% and data and other services contributed 11%. Operating profits increased by 66%. Pre-tax profits stood at Rs. 9.2 billion whilst post-tax profits amounted to Rs. 5.4 billion.

The release said these results have bettered the "best performance since privatisation", which we achieved in 2005 and is testament to the Group's strategy, its technical prowess and dynamism. It is also a clear indicator of the market potential that exists in the industry for SLT as a forward thinking and proactive player.

The performance of the Services sector was fuelled mainly by the continued growth shown by the Transport, Storage and Telecommunications sub-sector, which expanded by 13% for the first half of 2006. Telecommunications was the highest contributor to this growth rate, expanding by 21.5% for the same period.

The positive trends in the industry continued with expansion of coverage and introduction of new technologies and value added services, all of which took place in a very competitive environment.

Telecom Service providers recorded a significant revenue growth in the area of Fixed Access - Wireless Loop telephony using CDMA technology. Mobile phone subscribers and revenue also grew.