SLT Group posts 1.3% growth | Sunday Observer

SLT Group posts 1.3% growth

Sri Lanka Telecom PLC released the financial statements of the Company and Group for the nine months ending September 30, 2017. The Group comprises nine subsidiaries including mobile arm Mobitel (Pvt) Ltd as well as E-Channeling (Pvt) Ltd which is a subsidiary of Mobitel (Pvt) Ltd.

During the nine-month period ending September 30, 2017, the Group reported a revenue of Rs. 56.4 bn with year-on-year growth of 1.3%.

The marginal increase of mobile related revenue mainly due to tax increases has resulted in the lower than expected revenue growth of the company.

The Group operating costs amounted to Rs. 40.26 bn with a 1.5% Year on Year increase. The measures taken to control the costs and reductions in revenue related direct costs, at Group level have enabled the Group to minimize the operational costs. Group EBITDA remained almost flat, owing to the low increase of revenue.

The Group Operating Profits dipped to Rs. 3.4 bn as a result of the heavy increase in depreciation. Substantial investments by the holding company have resulted in the increase in depreciation.

Profit before Tax and Profit after Tax of the group dipped to Rs. 4.1 bn and Rs. 3.2 bn respectively.

Sri Lanka Telecom PLC (SLT) reported a revenue of Rs. 33.4 bn. during the nine months ending September 30, 2017 with a Year on Year growth of 3.1% compared to the corresponding period in the previous year.

Operating costs of the Company amounted to Rs. 24.7 bn with a 1.6% year on year increase during the period under review. Company EBITDA grew by 7.5% Year on Year to Rs. 8.7 bn.

The company depreciation escalated to Rs.8.2 bn during the period under review with a YoY growth of 31%. Despite the increase of company EBITDA, owing to growth of depreciation, the company’s Operating Profits dipped Year on Year to Rs.0.507 bn.