Sri Lanka Telecom (SLT), including mobile operator Mobitel, has released its group and company financial results for the six months ended 30 June 2012, recording a 15% year-on-year increase in consolidated operating profit (EBIT) to LKR3.36 billion (USD25 million) on group revenues that climbed by 11% to LKR27.50 billion in the same period. Depreciation of the Sri Lankan rupee continued to have a significant adverse impact on group net profitability, due to US dollar exposure at subsidiary Mobitel; net income declined by 56% year-on-year in the first six months of 2012 to LKR1.06 billion.
Parent company SLT recorded fixed line division revenue growth of 7.3% in January-June 2012 to reach LKR17.15 billion, the highest growth rate achieved since 2006, driven by non-traditional revenue streams such as fixed broadband, IPTV (‘PEOTV’), wholesale, enterprise and international services. Profit after tax also increased, by 16% to LKR2.04 billion.
Mobitel increased its H1 revenues by 12% y-o-y to LKR11.75 billion, helping drive EBIT up by 27% to LKR1.42 billion. However, exchange loss of LKR1.99 billion resulted in a loss after tax of LKR987 million for 1H12 for the cellular unit.