Sri Lanka Telecom returns to profit in December quarter
ECONOMYNEXT – Sri Lanka Telecom, the country’s sold wireline operator, which has a mobile unit, said it returned to profit in the December 2016 quarter with earnings of Rs124 million compared with a loss of Rs383 million a year ago.
The group’s revenues rose 5.5 percent to Rs18.1 billion rupees in the quarter from the previous year, according to interim accounts filed with the stock exchange.
The accounts of the group which comprises of the holding company and eight subsidiaries including Mobitel (Pvt) Ltd, the mobile arm, showed sharp increases in other income and interest income and lower income tax expenses.
The group reported earnings of 07 cents per share. The SLT share was last traded at Rs 34.90.
In the year to December 2016 SLT reported earnings of 2.65 rupees per share on total profits of 4.8 billion rupees, up 28.6 percent from the year before.
A statement from the group said annual profit growth was driven by an increase in revenue of both fixed ICT and Mobile segments reaching a total of Rs73.8 billion.
“The decision to make continuous investments in data and broadband related products providing superior experience in quality and speed at competitive rates is reflected in the revenue increase.”
SKT Group operating costs rose by 11.7% as a result of the increased government tax levies and ITL (International Telecommunications Levy) rate by US$ 0.03 and due to the damages caused to equipment and infrastructure by floods affecting several provinces.
“Despite the cost escalations the group reported an EBITDA of Rs.20.2 billion during the year with a year on year growth of 1%. The group EBITDA margin was reported at 27.4%.
(COLOMBO, March 02, 2017)