SLT group sales up 1.4% in Q1

Sri Lanka Telecom (SLT) reports that its group (fixed and mobile) revenues climbed 1.4% year-on-year to LKR18.7 billion (USD121 million) in the first quarter of 2017, representing a slowdown in growth rate blamed on taxation changes. Group operating expenditure increased by 2.7% to LKR13.1 billion in Q1 from LKR12.7 billion last year ‘in line with business expansion and external factors’, whilst the impact of foreign currency translation losses continued to affect results due to the depreciation of the LKR against the USD: during the quarter there was a foreign exchange loss of LKR364 million. Profit before tax and net profit both dipped in the quarter, by LKR1.8 billion and LKR1.5 billion respectively. SLT’s announcement highlighted its recent and ongoing investments in fibre and LTE mobile networks, saying that it is accelerating multiple projects, having rolled out ‘1,000 LTE base stations [via cellular division Mobitel] and 100,000 fibre ports,’ with further expansion imminent.