Sri Lanka Telecom (SLT) has reported a 407% rise in full-year consolidated net profit to LKR3.94 billion (USD35 million) in 2010, as consolidated net revenues grew to LKR50.25 billion. The Colombo-based fixed, mobile, internet and TV provider’s core operating division posted a marginal drop in gross revenue to LKR33.3 billion in 2010 from LKR34.1 billion in 2009, which it said was mainly due to price pressures and alternative telecoms solutions available in the market. SLT disclosed that fixed broadband customers passed the 200,000 mark by the end of the year, showing growth of 36%, whilst it also ended 2010 with 1.4 million fixed lines in service. Copper-based wireline customers increased by 24,000 year-on-year to slightly below 900,000 at end-December 2010, while the fixed-wireless CDMA user base declined by 12,000 to 550,000, a trend that SLT said demonstrates customer preference for ADSL services.
SLT’s mobile arm Mobitel recovered from a dip in profits in 2009, posting net income of LKR1.51 billion compared to a loss of LKR395 million twelve months ago, underpinned by a near-30% rise in revenue to LKR20 billion and cost management initiatives. The company noted that the profit improvement was achieved despite an annual corporate tax bill of LKR431 million, up from LKR176 million in 2009. The corporate liability came into effect on 1 July 2009 due to the expiry of a tax holiday granted to Mobitel. The 2G/3G cellular operator crossed the four million customer milestone by the end of 2010 and also raised its EBITDA by 62% to LKR6.66 billion.
Elsewhere, SLT’s wireless broadband unit Sky Network unveiled a Sri Lankan WiMAX 16e-based high speed fixed broadband network in November 2010, whilst pay-TV division VisionCom recorded a 91% growth in its customer base in the year.