SLT says investments in data and broadband products impacted growth increase
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Sri Lanka Telecom PLC results for the year ending 2016 has revealed a healthy revenue growth by 8.5 per cent and profits up by 28.6 per cent compared to 2015. The group comprises its holding company and eight subsidiaries including Mobitel (Pvt) Ltd, the mobile arm.
The group recorded a net profit of Rs.4.8 billion with a marked increase of 28.6 per cent year on year. This growth was driven by an increase in revenue of both Fixed ICT and Mobile segments reaching a total of Rs 73.8 billion, a media release said.
“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,” it said.
The release said that group operating costs rose by 11.7 per cent as a result of the increased government tax levies, 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 per cent. The group EBITDA margin was reported at 27.4 per cent. Along with the improvements in revenue growth the lower impact of foreign exchange rate variations has positively impacted the Net Profit growth of the group.”