SLT Group posts Rs 1.37 b PAT in 1 H
Corporate tax eats into profit margins:
Sri Lanka Telecom PLC, (SLT) the national integrated
telecommunications service provider released the financial results of
the company and group for the quarter ended June 30, 2010 and for the
first half of year 2010 last week.
|
Sri Lanka Telecom, CEO,
Greg Young |
During the second quarter, the group has recorded a profit before tax
(PBT) of Rs 1.21 billion, an impressive 132 percent growth when compared
to Rs 523 million profit before taxation (PBT) in the corresponding
quarter of the previous year.
Group PBT shows significant growth of 158 percent to Rs 1.35 billion
after normalizing for non recurring expenses and a refund of
Telecommunication Development Charge (TDC). Group Profit after Tax (PAT)
for the second quarter rose to Rs 769 million, registering a growth of
105 percent, or after normalization for non recurring expenses, a
resulting growth of 127 percent in PAT (Rs 851 million) against the
second quarter of 2009.
Group revenue for the second quarter has increased by 5 percent to Rs
12.36 billion compared to the same quarter of previous year.
For the first half 2010, the Group recorded a PBT of Rs 2.16 billion
against the first half 2009, an increase of 19 percent while PAT
increased by 2 percent to Rs 1.37 billion mainly due to an increase in
corporate tax by 66 percent. This increase in corporate tax compared to
first half of 2009 is mainly driven by the expiry of the Mobitel tax
holiday in second quarter 2009.
After normalization for non recurring expenses and TDC refund, a
resulting Group PBT of Rs 2.57 billion (42 percent increase) and Group
PAT of Rs 1.64 billion (22 percent increase). Group revenue for the 1
half 2010 has increased by 4 percent to Rs 24.57 billion compared to the
same period in 2009.
The total group customer base has risen to 5.15 million as at June
2010, an increase of 15 percent over the last 12 months driven largely
by rapid growth of mobile customers.
The SLT Group is poised to seize opportunities in non-traditional
revenue areas while focusing on initiatives to protect revenues from
their traditional business.
SLT company revenue declined by three percent to Rs 16.39 billion for
the first half 2010. This decline was mainly driven by a reduction in
revenue from traditional voice business, mainly CDMA.
Profit before tax of SLT company for first half 2010 is Rs 1.39
billion, a 13 percent reduction Year on Year and profit after tax for
the first half 2010 is Rs 854 million, a decline of 26 percent.
However, after normalization for non recurring expenses and TDC
refund, normalized PBT and PAT of SLT company is Rs 1.81 billion and Rs
1.12 billion. |
