SLT Group posts Rs 4,399 m profit in first 9 months
Sri Lanka Telecom PLC (SLT), the dominant telecommunications service
provider of the nation has announced recently the financial results of
the company and their associated groups for the nine months that ended
September, 30 2008.
The subsidiaries of SLT Group are Mobitel, Sri Lanka Telecom
(Services), SLT Publications, Sky Network, SLT Hong Kong Limited, SLT
Manpower Solutions and SLT Vision Com.
Despite the adverse market conditions, the group has been able to
maintain the same profits level as of the first nine months of the
previous year. During the nine months ended September 30, 2008 the group
has achieved a net profit after tax amounting to Rs.4, 399 million and
records a marginal growth compared to Rs.4, 335 million for the same
period of the previous year.
The high performance of SLT’s fully owned mobile arm, Mobitel, has
improved the group revenue growth by 10% to Rs.35,049 million year on
year. Further, 45% growth of data oriented services offered by SLT has
also strengthened the increase of revenue. Reduction in CDMA new
connections revenue by 70% amounting to Rs.616 million has significantly
impacted revenue growth. The domestic revenue has been maintained at the
same level as the previous year, despite the tariff reduction in
November 2007 and inflation driven economic factors. Operational
expenditure of the group for the nine months has increased by 18% due to
inflationary driven factors. Staff related costs have increased by 30%
to Rs.5,633 million while utility and transport related costs have
increased by 42% to Rs.6,971 million. The cost of CDMA sales has reduced
by 55% to Rs.711 million, while provision for bad debts has increased by
41% to Rs.1, 234 million. This is mainly due to outstanding debts owed
Sri Lanka Telecom PLC, has reported an after tax net profit of
Rs.3,609 million during the nine months ended September 30, 2008 a
decrease of 16% compared with the same period of the previous year. The
company revenue has slightly dropped from Rs.27,636 million to Rs.27,484
million when compared with the revenue earned during the 9 months of the
previous year. The drop in revenue is mainly due to the reduction in
number of CDMA new connections given and also the reduction in the
connection charges, during the period under review.
The prevailing competitive nature of the market has forced the
company to reduce the new connection charges of CDMA.
Overall, the domestic revenue levels has been maintained as that of
the corresponding period of the pervious year despite inflation driven
economic factors and the tariff revision implemented last year. SLTL’s
wholly owned subsidiary and mobile operator Mobitel (Pvt) Ltd., recorded
a strong growth in the first nine months of operations in 2008.
The subscriber base has increased by 103% to 2.26 million when
compared with the corresponding period of last year. This growth was
contributed through the continued growth in prepaid base as well as the
rapid uptake of postpaid subscribers following the introduction of the
“Upahara Package” to the government sector.
Revenue Components Jan to Sep Growth
PSTN and CDMA call and rental
charges and PSTN new connection
revenue deferred 15,231 15,210 (0%)
CDMA new connection revenue 2,061 616 (70%)
International revenue 6,784 6,517 (4%)
Data & other operating revenue 2,869 4,147 45%
Subsidiary revenue 4,960 8,559 73%
Total group revenue 31,905 35,049 10%