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| SLT financial results for the first 9 months of 2012 |
SLT financial results for the first 9 months of 2012
Sri Lanka Telecom (SLT),
the leading integrated telecommunication service provider, released its
financial results for the first 9 months of 2012, recording Rs. 5.01 bn Group
Operating Profit, a growth of 16% Year on Year (YoY). The Group revenue has
increased to Rs. 42.07 bn, an increase of 12% YoY. Despite the gain on foreign
exchange translation in Q3 2012 due to appreciation of rupee against Q1 and Q2,
2012 and the impressive increase in Group Operating Profits, cumulative group
translation loss on exchange has diluted the Profit Before Tax (PBT) and Profit
After Tax (PAT).
Normalized basis (without exchange loss on translation), the group
has reported an impressive PBT of
Rs.5.76 bn, an increase of 21% and PAT of Rs.4.33 bn, an increase of 26%
YoY. These normalized results further underscore SLT as the leader and the
enabler in integrated telecommunications in Sri Lanka. However, after the Loss
on Exchange Translation arising from Mobitel, Group PBT and PAT declined by 11%
and 18% to Rs. 4.3 billion and Rs. 2.9 billion respectively.
Commenting on the first
quarter results, SLT Group Chairman Nimal Welgama said “Consistent Growth in operating
profits in 2012 demonstrates our strength, resilience and aligned growth
strategy of our group of companies to deliver strong results. As the catalyst
in enabling ICT in the country, we will continue to invest in Network
Modernization, Capacity & Coverage Expansion with a view to take ICT in our
country to the next level while creating value for our stake holders.”
At company level, revenue
for 9 months YTD increased by 7% to Rs. 25.82 bn. PBT and PAT of SLT Company
increased by 2% and 3% to Rs. 3.69 bn and Rs.2.7 bn respectively. Revenue
streams including fixed broadband, PEO TV, Wholesale, Enterprise and
International were drivers of revenue growth. Defying the global trend of
declining fixed line subscribers, Sri Lanka Telecom’s wide product range and
demand for high speed uninterrupted broadband and entertainment through PEO TV
have seen fixed wire line customers increase by 6% YoY to 985,752 steadily
heading towards the major milestone of 1 mn Megaline subscribers.
Despite the increase in
revenue of the company, increases in International Telecommunication Levy and
energy costs have contributed to a significant increase in operating costs
which had an impact on profit growth.
Mobitel, the mobile arm
of the group continued to grow its revenue despite heavy competition in the
industry. Revenue for the first nine months of 2012 grew by 14 % to Rs 18.2 bn
compared to the same period in the previous year. The revenue growth was mainly
driven by the increase in Mobitel Subscriber base. With the completion of the
Stage VI expansion project by mid-2012, significant enhancements in network
capacity and coverage have translated in to better customer experience.
Despite many challenges,
Mobitel managed to record growth in key profitability indicators with EBITDA
and EBIT growing by 20% and 30% respectively during the period under review.
Growth in these profitability indicators was achieved from growth in revenue
coupled with initiatives for cost optimisation and productivity improvements.
These initiatives have strongly contributed towards the growth in EBITDA as
well as EBITDA margin withering challenges faced by increasing fuel,
electricity and other input prices. Company reported a healthy EBITDA Margin of
33% which is a notable improvement over last year. Without the exchange loss on
translation, PBT has recorded an impressive growth of 45 % for the period under
review.
Mobitel made an
impressive PAT over 1bn during 3rdquarter as a result of increasing revenues
complemented by marginal appreciation of the rupee. As a result of that company
was able to wipe off losses incurred during the first half brought about by
heavy exchange losses incurred.
The publication arm of
SLT Group, SLT Publications recorded revenue of Rs.461mn.while recording a PBT
and PAT of Rs.243.mn and Rs.175 mn.