SLT group 9 months operating profits up by 16% to Rs. 5 bn
Sri Lanka Telecom (SLT), released its financial results for the first
nine months of 2012, recording Rs. 5.01 billion Group Operating Profit,
a growth of 16% Year on Year (YoY).
The Group revenue has increased to Rs. 42.07 billion, an increase of
12% YoY. Despite the gain on foreign exchange translation in Q3 2012 due
to appreciation of rupee against Q1 and Q2, 2012 and the impressive
increase in Group Operating Profits, cumulative group translation loss
on exchange has diluted the Profit before Tax (PBT) and Profit after Tax
(PAT).
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Chairman,
Nimal Welgama |
Normalized basis (without exchange loss on translation), the group
has reported an impressive PBT of Rs.5.76 bn, an increase of 21% and PAT
of Rs.4.33 bn, an increase of 26% YoY. These normalized results further
underscore SLT as the leader and the enabler in integrated
telecommunications in Sri Lanka. However, after the Loss on Exchange
Translation arising from Mobitel, Group PBT and PAT declined by 11% and
18% to Rs. 4.3 billion and Rs. 2.9 billion respectively.
SLT Group Chairman Nimal Welgama said “Consistent Growth in operating
profits in 2012 demonstrates our strength, resilience and aligned growth
strategy of our group of companies to deliver strong results. As the
catalyst in enabling ICT in the country, we will continue to invest in
Network Modernization, Capacity and Coverage Expansion with a view to
take ICT in our country to the next level while creating value for stake
holders.”
At company level, revenue for nine months YTD increased by 7% to Rs.
25.82 bn. PBT and PAT of SLT Company increased by 2% and 3% to Rs. 3.69
bn and Rs.2.7 bn respectively. Revenue streams including fixed
broadband, PEO TV, Wholesale, Enterprise and International were drivers
of revenue growth.
Defying the global trend of declining fixed line subscribers, Sri
Lanka Telecom’s wide product range and demand for high speed
uninterrupted broadband and entertainment through PEO TV have seen fixed
wire line customers increase by 6% YoY to 985,752 steadily heading
towards the major milestone of 1 mn Megaline subscribers.
Despite the increase in revenue of the company, increases in
International Telecommunication Levy and energy costs have contributed
to a significant increase in operating costs which had an impact on
profit growth.
Mobitel, continued to grow its revenue despite heavy competition in
the industry. Revenue for the first nine months of 2012 grew by 14 % to
Rs 18.2 bn compared to the same period in the previous year. The revenue
growth was mainly driven by the increase in Mobitel Subscriber base.
With the completion of the Stage VI expansion project by mid-2012,
significant enhancements in network capacity and coverage have
translated in to better customer experience.
Despite many challenges, Mobitel managed to record growth in key
profitability indicators with EBITDA and EBIT growing by 20% and 30%
respectively during the period under review.
Growth in these profitability indicators was achieved from growth in
revenue coupled with initiatives for cost optimisation and productivity
improvement.
These initiatives have strongly contributed towards the growth in
EBITDA as well as EBITDA margin withering challenges faced by increasing
fuel, electricity and other input prices.
Company reported a healthy EBITDA Margin of 33% which is a notable
improvement over last year.
Without the exchange loss on translation, PBT has recorded an
impressive growth of 45 % for the period under review.
Mobitel made an impressive PAT over 1bn during 3rdquarter as a result
of increasing revenues complemented by marginal appreciation of the
rupee.
As a result of that company was able to wipe off losses incurred
during the first half brought about by heavy exchange losses incurred.
The publication arm of SLT Group, SLT Publications recorded revenue
of Rs.461mn.while recording a PBT and PAT of Rs.243.mn and Rs.175
millions. |