SLT Group records Rs 3.26 bn PBT in 1H 2011

SLT Group has posted strong financial for the half year ended June 30, 2011 with a 51 percent growth in its profit before tax of Rs 3.26 bn when compared to the corresponding period of previous year.

The Group consist parent company Sri Lanka Telecom PLC (SLT) and seven subsidiaries including the company's mobile arm Mobitel (Pvt) Ltd (Mobitel).

The SLT Headquarters

During first six months, SLT Group has recorded a net profit after tax of Rs 2.44 bn which is a growth of 77 percent over the same period of prior year.

The Group's KPIs such as EBITDA, PBT and PAT margins have improved over the prior year, displaying SLT Group's quest for continuous improvement in financial returns.

The Group reported revenue of Rs 24.85 bn for the half year ended June 30, 2011 with impressive revenue growth in Broadband and PEO TV.

Meanwhile, the parent company SLT has recorded a profit before tax of Rs 2.35 bn for first six months, which is a 70 percent growth, compared to same period in the previous year.

Net profit after tax of the company for the same period has increased by 106 percent to Rs 1.76 bn.

The company net profit margin has improved to 11 percent from 5 percent of the corresponding period of the previous year.

Cost optimization initiatives together with reduction in volume driven costs have resulted in a significant reduction in operating cost by 8 percent compared with the same period of last year at company level.

In terms of revenue, the company is currently engaged in expanding its non?traditional revenue streams such as Broadband, PEO TV and wholesale, while focusing on sustaining traditional revenue streams such as fixed voice.

Commenting on the company's financial performance, SLT Group Chairman Nimal Welgama said that SLT has strengthened its position as the country's leading Integrated Telecommunication Service Provider with strong market positions in Fixed, Mobile, International, Data, Wholesale and Broadband. He said, "Sri Lanka is now strongly positioned on a platform of fast tracked development. The national vision is to make every citizen ICT empowered. Therefore, in line with the Government's objectives of ensuring that ICT is accessible to all, Sri Lanka Telecom has already taken many initiatives to take the ICT in the country to the next level including playing a pro active role in enabling ICT empowerment in remote villages of the country.

Mobitel, the mobile arm of SLT Group recorded a profit before tax of Rs 1 bn and a net profit after tax of Rs 778 mn during the 1st half of 2011 recording growth rates of 36 percent and 44 percent respectively compared to corresponding period of the previous year.