SLT Group posts Rs 3.9b profit
Sri Lanka Telecom (SLT), the national integrated telecommunication
service provider, recently released its company and group financial
statements for the first nine months of 2013.

SLT Group Chairman,
Nimal Welgama |
The SLT group comprises the holding company Sri Lanka Telecom PLC and
seven other subsidiaries including the mobile arm Mobitel (Pvt.) Ltd.
Group revenue increased by 5% to Rs. 44.6 billion during the first
nine months of this year compared to Rs. 42.3 billion for the
corresponding period of the previous year due to a strong mobile sector
coupled with expansion in the wholesale and data sectors.
At group level, operating expenditure increased by 9% to Rs. 30.68
billion from Rs. 28.15 for the first nine months of 2012. The group
posted Rs. 13.90 billion EBITDA, a decline of 2% year-on-year, resulting
in the impact of the holding company EBITDA.
Net Profit Before Tax (NPBT) and Net Profit After Tax (NPAT) of the
group have grown by 13% and 24% year-on-year to Rs. 5.3 billion and Rs.
3.9 billion. Favourable improvements in the non-operation transaction
areas of the group contributed to this growth.
The holding company SLT (PLC) recorded Rs. 26.9 billion in revenue
during the first nine months of 2013, a year-on-year growth of 4%
compared to Rs. 25.8 billion for the corresponding period of the
previous year.
The growth was provided by data, wholesale, enterprises, global and
the PEO TV service sectors that took the lead in revenue generation
through the non-voice sector. Operating expenditure of SLT increased by
11% to Rs. 19.7 billion.
The company recorded an EBITDA of Rs. 7.19 billion with a 27% EBITDA
margin. Compared to Rs. 8.01 billion EBITDA for the corresponding period
of 2012, this was a 10% drop that was largely driven by operating cost
increase by 11% to Rs. 19.72 billion compared to Rs. 17.81 billion for
the previous year.
A one-time charge of Rs. 345 million surcharge for the late payment
of TDC coupled with inflationary factors and repair and maintenance
costs significantly impacted operating cost.
The company posted a Rs. 3.16 billion NPBT and a Rs. 2.22 billion
NPAT during the first nine months of the year reporting a dip of 24% and
28% during the year. However, a substantial increase of 22.7% and 41.6%
of NPBT and NPAT has been reported by the company quarter-on-quarter,
resulting from the initiatives taken to provide better services.
The company is building the National Backbone Network with a large
investment.
Mobitel (Pvt.) Ltd, the mobile arm of the SLT Group continued its
consistent growth recording an encouraging performance in the third
quarter of 2013. Revenue growth for the first nine months of 2013 was
11% compared to the corresponding period of the previous year.
Revenue in 3Q, 2013 grew by 5% over 2Q with revenue for 3Q exceeding
Rs.7 billion, mainly driven by the increase of Mobitel subscribers in
the voice category and data category reporting a 13% increase in the
overall subscriber base.
Mobitel recorded growth in all key profitability indicators operating
in a maturing voice market with increased competition. EBITDA and EBIT
grew by 16% and 29% YoY. EBITDA margin for first nine months of 2013
ascended to 34% which is a two percent increase compared to the reported
EBITDA margin of 32% at the end of first half 2013.
This achievement was possible due to the revenue growth realised by
the initiatives undertaken for cost optimisation and productivity
enhancement. The NPAT recorded significant growth in the first nine
months of 2013 due to the growth in EBITDA and EBIT and decreased
currency costs compared to the corresponding period of the previous
year.
SLT was recently awarded ISO 9001:2008 Certification for its Quality
Management System (QMS) by the Sri Lanka Standards Institution (SLSI).
This certification covers all local and international services provided
by SLT and the operations of its branch offices islandwide.
The recent 'BT Top 25 Enterprises Award' saw SLT customers come
within the Top 25 Awards, while SLT was among the Top 10 enterprises.
Having more than 50% of its equity in the government and its
affiliates, SLT is committed to realising the nation's vision of 'Smart
Sri Lanka' by following the right policies and strategies, and thereby
empower the 'digital economy'. |