SLT posts Rs.6.5 b PBT in 2011

Sri Lanka Telecom (SLT), the leading National Integrated Telecommunications Service Provider continued its growth momentum, seeing its Profit Before Tax (PBT), Profit After Tax (PAT), revenue and all other Key Performance Indicators showcase sustained improvement.

SLT Chairman Nimal Welgama

Having achieved numerous milestones last year, the Group, which released its financial results for the year ended December 31st 2011, has invested heavily for the future with Rs. 18 Bn Capex, an increase of 176% YOY, whilst notching Profit Before Tax of Rs. 6.53 Bn, a YOY growth of 10% and Profit After Tax of Rs. 4.78 Bn, an increase of 21%, while recording a revenue of Rs. 50.95 Bn.

At company level, Sri Lanka Telecom posted Rs. 4.8 Bn, that is 21% growth in PBT, and an impressive 44% growth to Rs.3.56 Bn in PAT.

A visionary business strategy coupled with a pragmatic transformation plan has driven the Group to become the telecommunication solutions powerhouse in the country, delivering strong financial results that point towards stability and consistent performance within the Group.

SLT saw its wire fixed line revenue stabilise, arresting the declining trend that emerged about five years ago.

There was also significant growth contribution from non-traditional revenue streams, mainly fixed broadband, wholesale and enterprise sales, while mobile revenue also displayed a growth of 7% to stand at Rs. 21 Bn. Local revenue at Company level increased by 3%, which validates its strategies to turn around the earlier negative growth.

With revenue growth driven by broadband, data and enterprise services, Sri Lanka Telecom is focused on creating the optimum balance of revenue stemming from the right product mix.

In 2011, there was an aggressive pursuance of business opportunities, while gaps that contributed to leakage or wastage, resulting in unnecessary expenditure, were identified.

Loss making or low margin product lines were rationalised, while the portfolio was consolidated. In tandem, increasing efficiencies became a key strategy of the overall Business Plan, which, supported through IT and process change, contributed to delivering a very positive impact on the Group's bottom line, as is seen in the strong financial performance for the year.