SLT Group 1H 2012 operating profits up by 15 % to Rs. 3.36 b
Chairman of Sri Lanka Telecom Nimal Welgama
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Sri Lanka Telecom (SLT) released its Group and Company financial
results for the six months ended June 30, 2012, recording a Rs. 3.36
billion group operating profit, a growth of 15 % year on year (YoY).
Group revenue increased to Rs 27.50 billion, an increase of 11 % yoy.
Depreciation of the Sri Lankan rupee continued to have a significant
adverse impact on Group profit before tax (PBT) and PAT due to US $
exposure in the Group’s mobile subsidiary Mobitel.
With the inclusion of the translation impact of the exchange loss,
PBT at Group level declined by 37 % to Rs. 2.05 billion while profit
after tax (PAT) declined by 56 % to Rs.1.06 billion. However, once
normalized (without exchange loss on translation) the group has reported
an impressive PBT of Rs. 3.95 billion, an increase of 24 % and PAT of Rs.
2.97 billion, a growth of 26 % yoy.
During the first half 2012, the SLT group has invested Rs 7.9 billion
in strategically important areas including fixed and mobile broadband,
IPTV, mobile network expansion and in particular the i-Sri Lanka
programme to ensure high speed broadband connectivity for mega line
fixed customers. These investments enhance the Group footprint and
capabilities in the telecommunication market both locally and
internationally.
Nimal Welgama, Chairman of Sri Lanka Telecom (SLT) commenting on 1 H
2012 results said “as the country’s national telecommunications service
provider with an unmatched service portfolio, SLT continues to take the
lead role in advancing the telecommunication industry in Sri Lanka to
the next level.
SLT has powered the economy by boosting the telecommunication sector
over the last few decades and is poised to do so in the future with the
group’s vision aligned with the national vision for an IT enabled
country. At operating level, the SLT Group has delivered solid financial
performance for the first half 2012 and I am confident that the group
will deliver strong operating results for the financial year 2012.”
Parent company SLT has recorded a revenue growth of 7.3 % to reach Rs.
17.15 billion, the highest 1H revenue growth since 2006. This revenue
growth has been driven by non-traditional revenue streams such as fixed
broadband, PEOTV, wholesale, enterprise and international. PBT of SLT
increased by 16 % to Rs.2.73 billion while PAT increased by 16 % to
Rs.2.04 billion.
Company EBITDA margin has reduced to 32 % from 35 % in the
corresponding period in 2011, mainly driven by increases in
international telecommunication levy, energy costs, forex impact on
direct and operating costs and domestic expense increases.
Mobitel, the Group’s flagship subsidiary, saw its 1H revenue grow by
12 % to Rs.11.75 billion. EBITDA margin increased to 33 % from 31 % in
the corresponding period in 2011, driven by the revenue growth and cost
optimization initiatives. Operating profits increased to Rs. 1.42
billion, an impressive growth of 27 %.
However, exchange loss of Rs.1.99 billion on translation triggered a
loss after tax of Rs. 987 million for 1H 2012. Normalized to exclude
exchange loss, Mobitel profit before tax of Rs.1.27 billion and profit
after tax of Rs. 1 billion increased by 45 % and 55 % respectively yoy. |