SLT records Rs. 1.71b PBT in 1Q

Sri Lanka Telecom (SLT) announced its Company and Group financial results for the 1st-quarter of 2011. The national telecommunications services provider posted a strong group financial performance with a Profit before Tax (PBT) of Rs. 1.71b which is a growth of 82 percent year on year (YoY).

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

Chairman SLT Nimal Welgama

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

Group Revenue grew to Rs. 12.4b, 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.

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.

SLT - a key contributor in taking ICT to the next level in the country embarked on a multibillion investment drive in the first quarter 2011 for Network Modernisation, Technology Upgrades, and Capacity Coverage Expansions.

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

Chairman SLT Nimal Welgama said, "As the country's national telecommunications services provider, SLT shoulders its responsibility pro-actively, constantly striving to position Sri Lanka as the regional leader in the realm of ICT.

SLT has powered the economy by boosting the telecommunications sector over the last few decades and is poised to stimulate and support the momentous economic growth in the journey towards making Sri Lanka, the Miracle of Asia."

"SLT has closely aligned its group vision to the national vision for an IT-enabled country that stands at the zenith of ICT technology. The group's rapid diversification, increased capacity and adoption of the latest ICT advances have empowered us to record an impressive performance in 1st quarter of this year."

Non-traditional revenue lines such as broadband and data have shown impressive growth. Value additions such as ADSL and PEO TV have increased PSTN (wired lines) customer base, enabling the company to pass the milestone of a 900,000 customer base in 1st quarter.

SLT broadband customers using Entre, Home Plus, Office Plus and Excel Plus volume-based packages benefitted from the free speed boost and increase of data volumes to their Internet experience.

Mobitel recorded a PAT of Rs. 384 m in 2011 as compared to Rs. 204 m in the corresponding quarter of 2010 reflecting an 88 percent YoY growth despite formidable challenges faced in a fiercely competitive industry.

The growth achieved in overall revenue, which increased by over Rs, 600 m continues to be reflected across profitability indicators with EBITDA and NPAT growing by 8 percent and 88 percent.

Mobitel reported a healthy performance, recording a growth in both subscribers and revenue by 13 percent each, during this period as compared to the corresponding period last year. In a voice market that is fast reaching maturity, Mobitel captured a significant share of mobile subscribers to increase its base by almost 500,000 within 12 months, ending March 31.