SLT Group PAT up 11%

Sri Lanka Telecom PLC (SLT) released its company and group financial performance for the 4th Quarter 2014, and the cumulative for 2014.

The group comprises the holding company, Sri Lanka Telecom PLC and seven other subsidiaries including the mobile arm Mobitel (Pvt) Ltd. (Mobitel).

The SLT group maintained its overall growth momentum during 2014. Group revenue for the year was up by 8% to Rs. 65.0 billion.

All the segments of the group comprising Fixed, Mobile and Others positively contributed to this increase.

Owing largely to price escalations coupled with the impact of an out of court settlement on civil litigation in relation to the import of the IPTV system in 2007-2008, the operating costs of the group increased by 12% to Rs. 46.3 billion during 2014, compared to the year before.

The group Profit Before Tax for 2014 increased by 12% year-on-year to Rs.8.2 billion. Refund received from the Telecommunication Development Charge (TDC) of Rs. 1.2 billion during the year against Rs. 0.6 billion for the previous year that has also contributed to this bottom line growth.

Group Profit After Tax for 2014 was Rs. 6.0 billion up by 11% year-on-year. During the year the group invested Rs. 20.2 billion in infrastructure.

The holding company, Sri Lanka Telecom PLC reported Rs. 38.9 billion in revenue during 2014 with 6% year-on-year growth.

Despite the threats to voice related revenue, wholesale, enterprise, data and IPTV related revenue demonstrated a positive upward trend. Continuous investments in new technology and infrastructure have largely contributed to revenue growth.

The company has invested Rs. 16.4 billion in infrastructure and technology. Operational costs of the company have increased 10% during the year, resulting from the same reasons given above to Rs. 29.5 billion as compared to the year before.

Profit Before Tax dipped by 3% to Rs. 4.8 billion, from the year before. Impact of litigation, amounting to Rs. 673 million has largely negated the profits.SLT Group Chairman, P.G. Kumarasinghe Sirisena, said that with other board members including those appointed recently they will drive the company towards its strategic objectives aimed at supporting Digital Sri Lanka by capturing new opportunities and rising above prevailing challenges.

He said he has confidence in the well-educated professional work force, strong market presence coupled with diversified infrastructure, in enhancing the value of stakeholders.