Mobitel rings high profit growth

Wednesday, 20 February 2013 01:26 - - {{hitsCtrl.values.hits}}

Mobitel has delivered a commendable performance in 2012, successfully overcoming the challenges encountered.

The Company has recorded a Profit Before Tax (normalised to exclude exchange loss) of Rs. 2.98 billion and Profit After Tax of 2.43 billion, reflecting a growth of 34% and 38% YoY respectively. It was the highest-ever normalised profits recorded.

The Company recorded a growth in key profitability indicators EBITDA and EBIT which increased by 21% and 20% respectively compared to 2011. In absolute terms EBITDA reached Rs. 8.28 billion while EBIT was recorded at Rs. 3.24 billion. The company EBITDA margin improved from 31% to 33% which further endorses the operational efficiency of the organisation.

Mobitel Group also recorded an impressive revenue growth of 13% in 2012 despite intensified competition in the mobile telephony sector.

In absolute terms, Mobitel recorded revenue of Rs. 24.93 billion in 2012 compared to Rs. 22.08 billion in 2011, an increase of Rs. 2.85 billion. This growth was realised mainly due to the increase in Mobitel’s subscriber base by 14%, which is a remarkable achievement, considering the fact that the voice market has reached 100% penetration by 4Q 2012 according to the Telecom Regulatory Commission of Sri Lanka (TRCSL).

The growth in Mobitel’s subscriber base can be attributed to various factors including Mobitel’s continuous commitment and investments made towards scaling and upgrading its network infrastructure. Completion of the stage VI project in mid-2012 led to significant enhancements in network coverage and capacity that has translated into better customer experience. An innovative product suite, comprehensive service offering and extensive reach to the furthest corners of the island also contributed towards significant growth in subscribers and revenue.

Prudent cost management initiatives coupled with measures to enhance productivity contributed to help negate the adverse impact of increased operational expenditure.