SLT Group records Rs 5b PAT
Sri Lanka Telecom PLC (SLT) released its company and group financial
results for the nine months ending September 2014 recently. The group
comprises holding company SLT and its subsidiaries including the mobile
arm Mobitel (Pvt) Ltd.
SLT Chairman Nimal Welgama
Maintaining the growth momentum, the group recorded Rs. 48.0 billion
in revenue during the nine months ending September 2014 with 8%
All revenue segments comprising fixed, mobile and others contributed
to this growth. The operating cost has increased by 8% to Rs. 33.2
billion during the nine months to 2014.
A Rs. 673 million one time charge on the operating expenses of the
SLT resulting from an out of court settlement on civil litigation in
relation to the import of the IPTV system in 2007-2008 has largely
driven this increase in cost.
The group Earnings Before Interest, Tax, Depreciation and
Amortisation (EBITDA) was up by 7% year-on-year to Rs. 14.9 billion
despite pressures on profitability and the EBITDA margin has been
maintained at the range of 31%.
The group reported Rs. 6.6 billion profit before tax with a
year-on-year growth of 25%. The profit after tax increased by 29% from
the corresponding period of the previous year to Rs. 5.0 billion.
The group annualised earnings per share had increased from Rs. 2.88
to Rs. 3.73 during the corresponding period of the previous year.
The holding company reported Rs. 28.9 billion revenue during the nine
months to September 2014, which compared to the corresponding period of
the previous year shows an increase of 7%. This increase was driven by
non-traditional revenue streams such as internet, wholesale, global,
international and IPTV.
The company introduced a new state–of-the-art IPTV system with high
capacity and this novel feature will address the increasing demand for
Operating expenses of the company increased year-on-year by 9% to Rs.
21.6 billion during the nine months to September 2014.
The Rs. 673 million one time charge for an out of court settlement to
civil litigation has contributed to this increase.
Accordingly, the company EBITDA margin marginally dropped from 26.7%
to 25.3% during the first nine months of 2014, compared to the
corresponding period of the previous year but, however, under normal
circumstances the margin is over 27%.
The profit before tax and after tax dipped by 3% and 8% compared to
year-on-year, to Rs. 3.1 billion and Rs. 2.0 billion.
Mobitel (Pvt) Ltd, the mobile arm of the SLT Group continued its
consistent growth despite a intensifying competitive environment in the
Revenue for the first nine months of 2014 increased to Rs. 22.7
billion, up 11% compared to the corresponding period in 2013.
This growth was mainly driven by the increase in Mobitel subscribers
in voice and in data reporting a 7% increase in the overall subscriber
base. It is a testimony of the continuous investments made in the latest
technology, capacity enhancement and expansion in coverage providing the
customer a better experience with Mobitel.
Backed by the robust growth in revenue, Mobitel recorded growth in
all key profitability indicators. In comparing the first nine months
performance it is observed that company EBITDA and EBIT has grown by 9%
and 8% YoY.
The company’s profit after tax for the first nine months of 2014 was
Rs. 2.6 billion compared to a profit after tax of Rs. 1.6 billion in the
first nine months of 2013.
Thus growth in profit after tax is appreciable compared to the
corresponding period of the past year. This is attributable to the
growth in EBITDA and EBIT.