Tuesday 1 March 2016

SLT Group posts Rs 3.7 bn profit

Sri Lanka Telecom PLC (SLT) released its Company and Group financial performance during the year 2015. The group comprises of the holding Company Sri Lanka Telecom PLC and 8 subsidiaries, including the mobile arm Mobitel (Pvt) Ltd.

During the year 2015 the group was able to identify strong technology opportunities, accelerated programmes and remain in a strong position in the market place. All segments of the group contributed to a 5% year on year revenue growth for the group with a healthy position reporting Rs 68 bn in total. Effective cost control measures of the group capped costs at Rs. 48 bn for the year reflecting an increase of 4% year on year.

The significant revenue growth in the year resulted in Group Operating Profit Before Depreciation and Amortization of Rs. 20 Bn with a 7% year on year growth. This has also resulted in sustaining EBITDA margin at a healthy level of 29%. Depreciation and Amortization of the group increased marginally to Rs. 13.2 bn in line with group investment in infrastructure expansions. Yet the group reported a Rs.6.7 bn Operating Profit during the year under review with a strong year on year growth of 19%.

During the year appreciation of US Dollar against the Sri Lankan Rupee caused SLT group to incur Rs. 2.1 bn, in translation losses as the group opted for more foreign currency denominated loans, thus taking advantage of low interest costs by utilizing its capability to repay borrowings through internally generated foreign currency in-flows.

It is worth noting that TDC refund was not received in the year opposed to Rs 1.3 bn in 2014 thus reflected in profit before tax and profit for the year being Rs 5.5 bn and 3.7 bn respectively.

SLT reached the revenue milestone of Rs. 40 bn. in 2015 increasing 4% from the previous year. The increase was largely driven by investments to enhance capacities and introducing new technologies while focusing on customer services. Company expects a continued growth through accelerated i-Sri-Lanka program enabling Island wide high speed broadband, voice and IPTV connectivity augmented with technologies such as LTE and Fibre to home.

Group Chief Executive Officer Dileepa Wijesundera said the group has been able to respond effectively to the changes taking place in the economic and market conditions while investing over Rs.20 bn in capacity building, introducing new technologies, improving the automation of internal processes . We are now focusing to enrich our products more and more with superior quality and latest technologies enriching our customers. Therefore, the growth potential of the group is promising, he said.

Group Chairman Kumarasinghe Sirisena said the group is contributing to the wellbeing of people of the country and supporting to the State on economic development while benefitting investors. The results achieved during the year 2015 were very much encouraging, Sirisena said.

Mobitel (Pvt) Ltd. continued its growth momentum recording 6.4% growth in revenues for the financial year 2015.Mobitel recorded a sales turnover of Rs. 32.5 bn in 2015 compared to Rs.30.6 bn in 2014, an increase of Rs.1.9 bn.

www.dailynews.lk

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