SLT’s profits climb 21%

Sri Lanka Telecom (SLT) has released its group financial results for the year ended 31 December 2011. Its earnings release flags up a 176% annual increase in capital expenditure (CAPEX) to LKR18 billion (USD152 million), including fixed line and internet/data networks as well as its mobile subsidiary, Mobitel. Consolidated profit after tax increased by 21% to LKR4.78 billion, on total group revenue of LKR50.95 billion in 2011, up by 1% from the previous year. SLT’s core fixed line/broadband division, reported as ‘the company’, posted a 44% rise to LKR3.56 billion in annual net profit, while it also said that local revenue at company level increased by 3%, driven by broadband, data and enterprise services. Mobitel’s mobile telephony service revenues from external customers increased from LKR15.529 billion in 2010 to LKR16.80 billion in 2011, according to the company’s financial statement. SLT added in its release that Mobitel saw operating income (EBIT) rise by 16%, EBITDA growth of 3% and a 6% increase in net profit, compared to the previous year. In May 2011 Mobitel claimed a first in South Asia by demonstrating 4G Long Term Evolution (LTE) technology with data speeds of up to 96Mbps, although larger cellular rival Dialog Axiata also announced a pilot LTE deployment in the same month.