SLT’s annual group operating profit climbs 19%

20 Feb 2013

Sri Lanka Telecom (SLT) has announced its group and company financial results for the year 2012, notching LKR6.17 billion (USD48.5 million) group operating profit, up 19% year-on-year. Despite a gain on foreign exchange translation in the second half of the year due to the appreciation of the rupee against the first half, cumulative translation loss on exchange for the full year diluted group net profit; on a normalised basis (without exchange loss on translation), the group reported a net profit of LKR5.25 billion, an increase of 10% y-o-y, but after the loss on exchange translation, group net profit declined by 10% to LKR4.04 billion. The bottom line reflects a challenging year for the group with increasing fuel and other energy prices, and rises in other costs which pressurised profitability, despite group revenue increasing 10% y-o-y to LKR56.77 billion. 2012’s annual financial statements were SLT’s first to be based on new Sri Lanka Accounting Standards.

At company level, SLT’s revenue increased by 8% to LKR34.72 billion, the highest revenue growth recorded since 2006, driven by broadband, enterprise data, wholesale, international services and IPTV. The company posted a net profit increase of 1% in FY12 to LKR3.36 billion. The company’s EBITDA and EBIT increased by 21% and 20% to LKR8.28 billion and LKR3.24 billion respectively, and company EBITDA margin improved from 31% to 33% reflecting operational efficiencies, the release said.

Mobitel, the group’s mobile arm, recorded a revenue growth rate of 13% in 2012 despite intensified competition in the mobile telephony sector, recording annual turnover of LKR24.93 billion compared to LKR22.08 billion the previous year, driven mainly by a 14% increase in Mobitel’s subscriber base over the twelve months. Mobitel’s net profit grew by 38% in 2012 to LKR2.43 billion, the operator’s highest ever normalised profit recorded.

During the three-year period 2010-2012 the SLT group invested LKR42 billion in capital expenditure (CAPEX), with LKR18.78 billion spent in FY12 alone – including LKR15.11 billion in fixed network operations and LKR3.66 billion invested by Mobitel – up from LKR18.66 billion in 2011 (including LKR10.09 billion fixed, LKR8.56 billion mobile).

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