SLT’s EBIT climbs 16% in 9M12

15 Nov 2012

Sri Lanka Telecom (SLT) has reported a 16% year-on-year rise in consolidated operating profit (EBIT) to LKR5.01 billion (USD38.5 million) in the first nine months of 2012, on group revenues which increased by 12% to LKR42.07 billion. Net profits declined by 11% to LKR2.90 billion, although if excluding currency exchange losses at its mobile division Mobitel, the bottom line would have risen 26% to LKR4.33 billion. The fixed network division posted nine-month revenue of LKR25.82 billion, up 7% year-on-year, while net profit increased by 3% to LKR2.70 billion, with growth driven by fixed broadband, IPTV, wholesale, enterprise and international services. Demand for broadband and IPTV had the knock-on effect of boosting SLT’s fixed wireline telephony customers (copper-based, excluding fixed-wireless) by 6% year-on-year to 985,752 at 30 September 2012. SLT noted that increases in the International Telecommunication Levy and energy costs have contributed to a significant increase in operating costs which had an impact on profit growth. Mobitel reported that for the first nine months of 2012 revenues grew by 14% to LKR18.2 billion compared to the same period in the previous year, mainly driven by subscriber base growth; EBITDA and EBIT grew by 20% and 30% respectively during the period under review, achieved via growth in revenue coupled with initiatives for cost optimisation and productivity improvements, the group’s statement said.

Sri Lanka, Mobitel (Sri Lanka), Sri Lanka Telecom (SLT)