SLT increases sales, EBIT by 9%, 14%; PSTN lines rise

16 May 2012

Sri Lanka Telecom (SLT) has reported that its consolidated operating profit (EBIT) grew by 14% year-on-year to LKR1.86 billion (USD14.5 million) in the first quarter of 2012, on revenues which climbed 9% to LKR13.53 billion. The consolidated results, including SLT’s mobile arm Mobitel, showed a 72% drop in profit after tax caused by the depreciation of local currency due to the significant US dollar exposure at Mobitel. The exchange loss of LKR1.4 billion for Q1 meant that net income fell to LKR365 million.

SLT’s fixed network division posted its highest quarterly revenue since 3Q 2009, at LKR8.59 billion, up 7% year-on-year in January-March 2012, while standalone net profit at the fixed unit registered a 39% y-o-y increase to LKR1.37 billion. Newer services such as fixed broadband and IPTV were key drivers of the telco’s revenue and profitability growth in the quarter, offsetting a rise in operational expenditure which was mainly driven by the doubling of the country’s International Telecommunication Levy to USD0.30 per minute. Demand for broadband and entertainment via ‘PEO TV’ resulted in PSTN line customers growing by 6% year-on-year.

Mobitel posted Q1 revenue growth of 12% to LKR5.84 billion, and EBITDA which rose 22% to LKR2.03 billion.

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