Mobitel reports strong profit in Q3 2012

Mobitel, continued to grow its revenue despite heavy competition in the industry. Revenue for the first nine months of 2012 grew by 14 % from Rs.15.9 billion to Rs.18.2 billion compared to the same period in the previous year.

Revenue growth was mainly driven by the increase in Mobitel’s subscriber base due to an enhanced customer experience. The completion of the Stage VI expansion project by mid-2012, significant enhancements in network capacity and coverage ensured smooth connectivity for customers as well.

Despite numerous challenges, Mobitel recorded 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 implemented for cost optimisation and productivity improvements. These initiatives have strongly contributed towards the growth in EBITDA as well as EBITDA margins.

The company reported a healthy EBITDA margin of 33 % which is a notable improvement over the previous year. Despite the exchange loss, PBT recorded an impressive growth of 45 % for the period under review.

Mobitel also made an impressive net profit of over Rs.1billion during the third quarter, as a result of increasing revenues complemented by a marginal appreciation of the rupee. Consequently, the company was able to wipe off losses incurred during the 1H 2012 brought about by the devaluation of the rupee.

Commenting on the company’s performance, it’s CEO, Lalith De Silva said, “The performance in Q3 2012 has certainly been impressive. At Mobitel, this year, we have focused mainly on transforming ourselves and the way we work - setting the stage for unparalleled growth and leadership in the ICT industry. Looking at our industry, we have focused on new strategies, policies, processes, technologies and ideas and have put in place a blueprint to catalyse and drive Mobitel to greater heights.

As the country’s National Mobile Service Provider, we have a great responsibility: to lead the ICT transformation of Sri Lanka, enabling us to keep up with the rapid development targets of the government, thus, transforming the country towards becoming the Wonder of Asia.”