Sri Lanka Telecom Group says exchange loss dilutes pre-tax profitsView(s):
Sri Lanka Telecom (SLT) said this week that the group’s financial results for the six months ended 30th June 2012 showed a Rs. 3.36 billion group operating profit, up 15 per cent year-on-year (YoY). In a media statement, SLT said group revenue has increased to Rs 27.50 billion, up11 per cent from last year.
“Depreciation of the Sri Lankan rupee continued to have a significant adverse impact on Group Profit before Tax (PBT) and PAT due to the US dollar exposure in the group’s Mobile subsidiary Mobitel. With the inclusion of the translation impact of the exchange loss, PBT at group level declined by 37 per cent to Rs. 2.05 billion while Profit after Tax (PAT) declined by 56 per cent to Rs.1.06 billion,” the statement added. “However, once normalized (without exchange loss on translation) the group has reported an impressive PBT of Rs. 3.95 billion, an increase of 24 per cent and PAT of Rs. 2.97 billion,” it said. During the 1st half 2012, the SLT group invested Rs 7.9 billion in strategically important areas including fixed and mobile broadband, IPTV, Mobile network expansion and in particular the i-Sri Lanka program to ensure high speed broadband connectivity for Mega Line fixed customers.
These investments enhance the group footprint and capabilities in the telecommunication market both locally and internationally. Nimal Welgama, Chairman of Sri Lanka Telecom (SLT) commenting on the results said, “SLT has powered the economy by boosting the telecommunication sector over the last few decades and is poised to do so in the future with the group’s vision aligned with the national vision for an IT enabled country. At operating level, the SLT Group has delivered solid financial performance for the 1st half 2012 and I am confident that the group will deliver strong operating results for the financial year 2012.” SLT’s own revenue rose to Rs. 17.15 billion, the highest 1H revenue growth since 2006. This revenue growth was driven by non-traditional revenue streams such as Fixed Broadband, PEOTV, Wholesale, Enterprise and International.
Mobitel’s revenue grew to Rs.11.75 billion. Operating profits increased to Rs. 1.42 billion but the exchange loss of Rs.1.99 billion on translation triggered a loss after tax of Rs. 987 million.
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