SLT posts 4%, 11% fixed, mobile revenue growth

Sri Lanka Telecom (SLT) has reported LKR26.9 billion (USD205 million) in revenue at its fixed network operating division during the first nine months of 2013, a year-on-year growth of 4%. Growth was driven by the telco’s Data, Wholesale, Enterprise, Global and ‘PEO TV’ (IPTV) segments. Operating expenditure at the fixed network unit increased by 11% to LKR19.7 billion, which was the largest factor driving fixed EBITDA to drop by 10% y-o-y to LKR7.2 billion in 9M13. A one-time charge of LKR345 million surcharge on late payments coupled with inflationary factors and repair and maintenance costs significantly impacted the operating cost increase. SLT’s fixed telecoms division posted LKR2.2 billion in net profit in January-September 2013, down by 28% y-o-y. Mobile unit Mobitel recorded revenue growth for the first nine months of 2013 of 11% supported by increases in both voice and data users, and a 13% increase in the overall mobile subscriber base. Mobitel’s EBITDA and EBIT grew by 16% and 29% respectively y-o-y, while EBITDA margin for 9M13 ascended by two percentage points to 34%, attributed to cost optimisation and productivity enhancement initiatives. For the SLT group as a whole, net profit grew by 24% year-on-year to LKR3.9 billion in the nine-month period; favourable transactions in non-operational segments of the group contributed to the profit growth.