Sri Lanka Telecom (SLT) has released its financial performance report for the first quarter of 2013, recording 5% year-on-year growth in group revenues to LKR14.45 billion (USD114 million), driven by the mobile sector as well as the expansion of broadband and data services. The group reported a net profit of LKR1.60 billion in January-March 2013, up by 83% from the previous quarter, and a 226% increase compared to 1Q12, a quarter which was negatively impacted by a LKR1.4 billion foreign currency conversion loss. However, increasing operating costs mainly driven by inflationary factors diluted the group’s EBITDA margin to 32% in the first three months of 2013, down from 36% in the same period of 2012.
Mobile division Mobitel reported that revenue for the first quarter of 2013 grew by 10% y-o-y to LKR6.6 billion ‘in the face of intense competition’, supported by investments in network capacity and coverage expansion, which in turn drove a 14% y-o-y increase in the customer base. Mobitel reported y-o-y improvement in all key profitability indicators, EBITDA (3%), EBIT (5%) and net profit (167%) during the quarter ended 31 March 2013. The rise in net profit was mainly brought about by the depreciation of the rupee in the early part of 2012.
At standalone ‘company level’, incorporating SLT’s core wireline operations, revenues grew by 1% year-on-year to LKR8.7 billion in 1Q13.