SLT Group 2018 3QYTD profits up by 23%
View(s):The Sri Lanka Telecom (PLC) last week released its group financial results for the nine months ending September showing a Year on Year (YoY) growth of 23.4 per cent with Net Profit After Tax reported at Rs.3.99 billion.
The continued revenue growth of the group has largely contributed to the improvements in net profit. “Backed by all the revenue streams including fixed voice, data, mobile, carrier businesses, television and the corporate business segment the group recorded Rs.60.1 billion in revenue with a 6.6 per cent YoY growth during the period under review,” the company said in a media release.
Net profit of the group was impacted by foreign exchange losses of Rs.1.1 billion during the period under review.
Group Chairman Kumarasinghe Sirisena expressed satisfaction on the healthy growth rate and strong results of the group. “Despite the challenges in the economy we have been able to achieve a significant level of growth through strategic investments and strategic decision making of the group. Being the pioneer and national telecommunications service provider in Sri Lanka, we strongly believe that we have contributed positively to the economic development and overall growth of telecommunication services in the country,” he said according to the media release.
Kiththi Perera, CEO of the holding company, said: “We are living in a fast paced digital era where the consumers needs and interest for digital solutions such as Ultra-fast Fibre connectivity (FTTH), wireless 4G connectivity (LTE), and Cloud technologies are growing. It is our responsibility to meet our customer needs. This is why we are transforming our company to become a digital service provider.”
Meanwhile SLT reported an outstanding YoY Net Profit growth of 75 per cent to reach Rs.1.3 billion during the first nine months of 2018. The company continued to grow its revenue through its extensive investment programmes carried out during the recent past to expand infrastructure facilities in order to provide high quality services to the customers through demanding technologies such as FTTH and LTE.
As a result, company revenue increased by 5.6 per cent to Rs.35.3 billion in the period under review. The company was able to manage operating costs at Rs.24.9 billionowing to the effective cost management initiatives.
Company EBITDA was reported at Rs.10.3 billion with 19.1 per cent YoY growth.
Subsidiary Mobitel continued to grow its revenue and key profitability indicators despite a challenging macroeconomic environment and intensifying competition in the market.
“Mobitel was able to record a growth in EBITDA and EBIT (Earnings Before Interest Tax) for the first nine months of 2018 which grew by 10 per cent and 16 per cent, respectively YoY which was aptly supported by operational efficiencies,” the release said.
Net profit for the first nine months of 2018 was recorded at Rs. 2.5 billion compared to a similar net profit of Rs. 2.5 billion in the first nine months of 2017. The depreciation of the rupee during the year triggered a considerable reduction in profits of the company.