SLT Group ups operating profit by 5.4%, increasing depreciation-hit bottom line

Friday, 2 March 2018 00:01 - - {{hitsCtrl.values.hits}}

Sri Lanka Telecom (PLC) Group said this week its Operating Profit Before Depreciation and Amortisation (EBITDA) improved by 5.4% to Rs. 21.2 b as a result of revenue growth and minimum escalation of operational costs. It said in 2017 the Group reported Rs.75.7 b revenue with year on year 2.6% growth contributed by all segments, despite the challenges on mobile revenue due to indirect taxes levied on mobile usages.

As a result of several initiatives, the operational costs were reported at Rs. 54.5 b with YoY increase of 1.6%.

The Group Operating Profit reported at Rs. 3.9 b with 31.6 % YoY drop due to the significant increase in depreciation and amortisation. Continuous investments of the group in expansions and introduction of new technologies have escalated the depreciation and amortisation.

The group largely invested in LTE, FTTH, IPTV, Global connectivity and Mobile services in the recently expanded customer base and providing more services. The gamut of SLT’s investments also included the expansion of National Backbone Network, launching of its newly built state-of-the-art Tier 3 Data Centre the country’s first ‘Purpose built tier 3 Data Centre’, in Pitipana-Homagama and officially commencing the SEA-ME-WE 5 undersea cable system, and newly established cable landing station in Matara within the third quarter.

SLT is also committed to further oversee South Asia’s first cutting-edge submarine cable depot in the Galle Port. With enhancing multiple global connectivity options with SEA-ME-We 5 international submarine cable system, company also provides global connectivity backhauling facility to international operators.

The Group profit after tax for the year 2017 was reported at Rs. 3.9 bn. Escalation of depreciation and amortisation has brought down the profit of the year too, by 17.7% YoY.

Sri Lanka Telecom (PLC) alone has reported Rs. 11.4 b Operating Profit Before Depreciation and Amortisation (EBITDA) with 14.9 % YoY growth resulting from lower operating costs when compared to previous year.

Company revenue of the year 2017 was reported at Rs. 44.5 b with 3.3% YoY growth and Operating costs of the year was reported at Rs. 33.1 b which was slightly lower than the last year. Company Profit After Tax for the year 2017 was reported at Rs. 1.4 b.