SLT June net up 58% amid strong top line per­for­mance

Daily Mirror (Sri Lanka) - - BUSINESS NEWS -

The State-con­trolled telecom­mu­ni­ca­tion be­he­moth, Sri Lanka Tele­com PLC (SLT) re­ported strong growth dur­ing quar­ter ended June 30, 2018 (2Q18), as the group wit­nessed pick up in rev­enues in its fixed tele­phony and data op­er­a­tions.

The quar­terly per­for­mance was fur­ther bol­stered by the strong top line per­for­mance of the group’s mo­bile tele­phone ser­vices sub­sidiary.

SLT re­ported earn­ings of 92 cents a share or Rs.1.7 bil­lion for the quar­ter un­der re­view com­pared to earn­ings of 58 cents a share or Rs.1.09 bil­lion re­ported for the same quar­ter, last year, which is a strong 58 per­cent in­crease year-on-year (YOY)

SLT op­er­ates with eight sub­sidiary com­pa­nies, in­clud­ing Mo­bi­tel Pri­vate Lim­ited.

But over Rs.700 mil­lion of the group profit came from the hold­ing com­pany—slt— and its rev­enue was just un­der Rs.12 bil­lion.

The group rev­enue for the quar­ter un­der re­view stood at Rs.19.7 bil­lion, up a bil­lion ru­pees from the same quar­ter, last year.

SLT group saw its bot­tom line fall­ing 19 per­cent year-on-year (YOY) to Rs.1.18 bil­lion for the quar­ter ended March 31, 2018 (1Q18) due to loss of rev­enue and busi­ness from its fixed ICT ser­vices amid height­ened com­pe­ti­tion.

The mod­ern phe­nom­e­non of peo­ple spend­ing ma­jor­ity of their time on their smart phones ap­pears to have pro­pelled SLT’S per­for­mance dur­ing the quar­ter un­der re­view and the oper­at­ing ef­fi­cien­cies as claimed by the com­pany.

The group re­ported oper­at­ing profit of Rs.1.6 bil­lion, up from Rs.1.2 bil­lion re­ported for the same pe­riod, last year.

SLT’S the top line per­for­mance was sup­ported by the group’s fixed ICT op­er­a­tions and mo­bile ser­vices which of­fers voice, broad­band, en­ter­prise so­lu­tions, whole­sale and pay TV ser­vices.

Mean­while, for the first six months of the year, SLT re­ported a net profit of Rs.2.8 bil­lion or per share earn­ings of Rs.1.57, up from Rs.2.5 bil­lion or Rs.1.39 a share re­ported for the same pe­riod, last year.

The group rev­enues were up by about two bil­lion ru­pees to Rs.39.5 bil­lion. Oper­at­ing profit stood at Rs.3.1 bil­lion, up from Rs.2.8 bil­lion.

“Dur­ing the pe­riod un­der re­view the group in­vested Rs.10.8 bil­lion for the ac­qui­si­tion of prop­erty, plant and equip­ment as well as in­tan­gi­ble as­sets aimed at tech­nol­ogy up­grades, in­fra­struc­ture ex­pan­sions, new con­nec­tions, IT and sys­tem up­grades etc.

In line with in­creas­ing in­vest­ments the group de­pre­ci­a­tion in­creased by 10.2 per­cent to Rs. 9.1 bil­lion”, the com­pany said in a state­ment.

The group raised a stag­ger­ing Rs.18.9 bil­lion in fresh bor­row­ings but set­tled Rs.10.2 bil­lion in ex­ist­ing loans.

A seg­men­tal break­down of busi­ness op­er­a­tions showed Mo­bi­tel Pri­vate Lim­ited in­creas­ing rev­enues from Rs.16.6 bil­lion to Rs.17.8 bil­lion for the six months. But the pre-tax profit of the seg­ment fell to Rs.2.12 bil­lion from Rs.2.22 bil­lion re­ported for the same pe­riod, last year.

As at June 30, 2018 the gov­ern­ment through the Na­tional Trea­sury held 49.50 per­cent stake in SLT while Global Telecom­mu­ni­ca­tions Hold­ings NV, a unit of Malaysia’s Maxis group backed by bil­lion­aire Ananda Kr­ish­nan held 44.98 per­cent stake.

The Em­ploy­ees’ Prov­i­dent Fund (EPF) had a 1.40 per­cent stake, be­ing the third largest share­holder.

Newspapers in English

Newspapers from Sri Lanka

© PressReader. All rights reserved.