SLT’s quarterly profit drops 16%

30 May 2008

Sri Lanka Telecom (SLT) has posted a 16% year-on-year fall in group net income to LKR1.663 billion (USD15.4 million) in the three months to the end of March 2008, on revenues that rose 6% to LKR11.6 billion, reports Lanka Business Online. At domestic company level, the wireline incumbent reported a sharper drop in net profit, down 30% y-o-y to LKR1.363 billion, with revenue down 3% to LKR9.389 billion. State-run SLT, which owns mobile operator Mobitel, blamed tariff cuts and rising costs for the decline in profits and core turnover. Group operating costs went up 22% to LKR5.572 billion in the quarter compared to a year ago. The results follow a 17% y-o-y fall in group net income in the previous quarter to the end of December 2007 (to LKR1.3 billion). SLT’s full-year group profits for 2007 were up 4% at LKR5.6 billion, on revenues that grew by 6% to LKR43.2 billion.

Sri Lanka, Sri Lanka Telecom (SLT-Mobitel)