Capital investment increase by 176% to Rs. 18 b:
SLT Group 2011 PBT Rs 6.53 b
PAT up by 21% to Rs 4.8 b:
Sri Lanka Telecom (SLT), profit before tax (PBT), profit after tax
(PAT), revenue and all other key performance indicators showcased
sustained improvement.
Having achieved numerous milestones last year, the Group, which
released its financial results for the year ended December 31, 2011, has
invested heavily for the future with Rs. 18 billion Capex, an increase
of 176% YOY, whilst notching profit before tax of Rs. 6.53 billion, a
YOY growth of 10% and profit after tax of Rs 4.78 billion, an increase
of 21%, while recording a revenue of Rs 50.95 billion. At company level,
Sri Lanka Telecom posted Rs. 4.8 billion, that is 21% growth in PBT, and
an impressive 44% growth to Rs.3.56 billion in PAT.
A visionary business strategy coupled with a pragmatic transformation
plan has driven the Group to become the telecommunication solutions
powerhouse in the country, delivering strong financial results that
point towards stability and consistent performance within the Group.
SLT saw its wire fixed line revenue stabilise, arresting the
declining trend that emerged about five years ago. There was also
significant growth contribution from non-traditional revenue streams,
mainly fixed broadband, wholesale and enterprise sales, while mobile
revenue also displayed a growth of 7% to stand at Rs 21 billion. Local
revenue at company level increased by 3%, which validates our strategies
to turn around the earlier negative growth.
With revenue growth driven by broadband, data and enterprise
services, Sri Lanka Telecom is very focused on creating the optimum
balance of revenue stemming from the right product mix. In 2011, there
was an aggressive pursuance of business opportunities, while gaps that
contributed to leakage or wastage, resulting in unnecessary expenditure,
were identified.
Loss making or low margin product lines were rationalised, while the
portfolio was consolidated. In tandem, increasing efficiencies became a
key strategy of the overall business plan, which, supported through IT
and process change, contributed to delivering a very positive impact on
the Group’s bottom line, as is seen in the strong financial performance
for the year.
The strong focus on instilling operational efficiencies and prudent
cost management strategies from the pragmatic restructuring process saw
operational costs managed at optimal levels. Company operating costs
reduced by 5%, primarily due to the reduction in volume driven expenses
and significant reduction in bad debts. At Group level, the increase in
operational costs was a marginal 1%.
It was these strategies that contributed to the improvement in EBITDA
margins at both Company and Group level, seen at 31% and 34%
respectively. Group net cash generated from operating activities also
increased from Rs 15.2 billion in 2010 to Rs 20.5 billion, while at
Company level, net cash generated from operating activities increased to
Rs 13.3 billion from Rs 10.6 billion.
Group EPS increased from Rs 2.18 in 2010 to Rs 2.65 in 2011, an
increase of 21%, which reflects the underlying consistent financial
performance and increased shareholder value.
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