SLT pre-tax profit rings 37% growth to Rs. 3.25 b in 1H

Wednesday, 7 August 2013 00:24 - - {{hitsCtrl.values.hits}}

Sri Lanka Telecom Group during the first half of 2013 has recorded a Net Profit Before Tax (NPBT) of Rs. 3.25 b, with 37% growth compared to the same period of the previous year and Rs. 2.33 b Net Profit After Tax (NPAT) with 79%. In respect of last year a Rs. 1.91 b exchange loss was observed and reduction of this has led to the significant growth of the period under consideration. The remarkable performance of mobile, data, enterprise and wholesales sectors have contributed to the increase of group revenue of Rs. 29.17 b by 5%. Group operating cost of Rs. 20.42 b has escalated by 11% during the first half of 2013 compared to Rs. 18.44 b of the same period of last year due to operational expansions and inflation.

Net margin has been improved to 8% from 5% of the first six months of the previous year. However, the group EBITDA (Earnings Before Interest, Tax Depreciation and Amortization) margin for the first half of 2013 has dipped to 30% from 34% of the corresponding period of the last year, deteriorating SLT Company EBITDA margin. During the first half of 2013 the group has make a significant investment of Rs. 9.49 b for the expansion of its mobile, data and other infrastructure facilities, compared to Rs. 7.92 b during the corresponding period of last year. SLT Group Chairman Nimal Welgama declared that the growth momentum of the SLT Group displays its resilience to the pressures of the market place. Investing in new technologies, transforming staff to perform innovatively and creatively and introducing new processes, the Group will continue to excel in the market. SLT Company has secured Rs. 17.56 b revenue during the first six months of the year compared to Rs. 17.15 b in the same period last year, which is 2% increase, due to the noteworthy performance of data, enterprise and wholesale sectors. However, substitute products available in the market have curbed the revenues of voice and international services. The company expects to arrest this situation by introducing value added services and a better customer experience. Operating cost of Rs. 12.89 b has been reported during the period under consideration. This is a 10% increase year-on-year. Commenting on SLT’s performance, Group CEO Lalith De Silva stated that SLT was an assets-rich company and effective utilisation of assets was a key to way forward. “Strategic investments in new technologies such as Wi-Fi and LTE will also play a pivotal role for sustainable growth in a competitive market. A corporate culture change is being embarked across the group to perceive staff to think innovatively and creatively towards increasing customer satisfaction.” He further stated that as a responsible corporate citizen in Sri Lanka, SLT invests heavily in the National Backbone Network (NBN), giving opportunities to peer operators to meet their network requirements and aligning with the Government’s ICT policy. SLT is now reaching migration of its entire customer base to the Next Generation Network (NGN), giving experience of IP (Internet Protocol) based technologies to all stakeholders. Every action has been taken to maximise Group synergies and all these efforts will ultimately enhance the value of the company. Mobitel Ltd., the mobile arm of the group, continued to grow its revenue despite the intensifying competitive position in the industry. Company revenue for the first half of 2013 was recorded at Rs. 13.4 b, up by 10% compared to the corresponding period in 2012. The company expects to secure revenue increase through continuous growth in its subscriber base as well as in the data business. Reflecting the growth in revenue, operating profitability of the company improved compared to the first half of 2012 while quarterly growth is also encouraging. Company EBITDA and EBIT (Earnings Before Interest and Tax) for the first half of 2013 grew by 9% and 16% respectively over the corresponding period of 2012. The growth in NPAT during the first half of 2013 is appreciable compared to last year. This is attributable to the growth in EBIT as well as the relative stability of the currency compared to the first half of last year.