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.

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'.