SLT group net profit up 3.7% to Rs. 5.6 b in 2007

Integrated telecommunication services provider Sri Lanka Telecom PLC (SLT) reported an after tax group net profit of Rs. 5.6 billion during the year 2007 compared to Rs. 5.4 billion of the previous year.

The group has achieved a 3.7% growth despite the reduction of call and rental charges of fixed lines and reduction of CDMA connection charges during the year.

Profit after tax at the company level has dipped by 2% to Rs. 5.4 billion due to price reductions and inflationary factors.

CEO, SLT, Shoji Takahashi said "Year 2007 was a year of mixed results. During the year we have achieved several milestones such as business diversifications, improvements to credit ratings and gaining BOI duty concessions while reducing prices.

This is important to maintain our competitive position in the market even though there is a marginal impact on our current year results. Our strategy to move from traditional voice business to package solutions will definitely differentiate SLT from others in the market place."

Domestic revenue comprises rental and local call charges from wired and CDMA connections and the applicable portion of differed new connection charges of wired lines.

Despite the reduction of local charges and rentals over 8% effective from January 2007, the company has maintained the effective revenue reduction rate as low as 4%, by increasing the customer base.