Sri Lanka Telecom March quarter net Rs1.6bn
COLOMBO (EconomyNext) – Sri Lanka Telecom said group net profit for the March 2015 quarter rose 201 percent to 1.6 billion rupees from the previous year with sales growth boosted by revenue streams like data and broadband.
Basic earnings per share for the quarter were 93 cents, a stock exchange filing said.
SLT group sales rose nine percent to 16.7 billion rupees during the first quarter of 2015 from the year before while operating costs remained at around 11 billion rupees.
The group EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) rose 34 percent to 5.6 billion rupees while EBITDA margin improved to 33.3 percent from 27.2 percent in the same quarter of the year before.
SLT said it had not provided for several new taxes including a ‘super gain’ tax imposed in the government budget of January 2015 as laws making them effective had not yet been passed.
SLT said revenue growth was driven by local non-voice revenue streams such as data and broadband, enterprise, small business and IPTV.
“Introduction of a high capacity IPTV system, expansions in broadband and data services and investments in infrastructure developments have largely contributed to the revenue growth,” SLT said.
The operating cost of the company was six percent below the same quarter of the previous year resulting from “effective cost controls apart from the impact to the operating cost of the previous year by one time charge resulting from an out of court settlement of a civil litigation.”
Net profits of SLT’s mobile arm, Mobitel, rose 67 percent to a billion rupees in the first quarter of 2015 form the year before which the firm attributed to growth in earnings before interest and tax as well as “favourable macro conditions.”
Mobitel “continued to grow its revenue despite industry challenges,” the statement said.
Mobitel’s sales for the first quarter of 2014 grew 12 percent to 8.1 billion rupees from the year before mainly due to continued growth in voice services not withstanding an industry slowdown.
“Also it was supported by the continuous growth in data services which is the future of the mobile industry,” the statement said.
“This encouraging growth is a result of the continuous investments made in the latest technology, capacity enhancements and coverage expansion.”