Mobitel subscriber base rises 14 % in 2012

Sri Lanka Telecom Mobitel saw its subscriber base increase by 14 per cent while revenues were up 13 per cent last year (calendar 2012).

Increased revenue growth was despite intensified competition in the mobile telephony sector, the company said in a year-end results statement.

“In absolute terms, Mobitel recorded revenue of Rs. 24.93 billion in 2012 compared to Rs.22.08 billion in 2011, an increase of Rs.2.85 billion. This growth was realized mainly due to the increase in Mobitel’s subscriber base by 14 per cent which is a remarkable achievement, considering the fact that the voice market has reached 100 per cent penetration by 4Q 2012 according to the Telecom Regulatory Commission of Sri Lanka (TRCSL),” the statement said.

It said the growth in Mobitel’s subscriber base was due to many reasons including the company’s continuous investments in scaling and upgrading its network infrastructure.

Completion of the stage VI project in mid-2012 led to significant enhancements in network coverage and capacity that has translated into better customer experience. An innovative product suite, a comprehensive service offering and an extensive reach to the furthest corners of the island also contributed towards significant growth in subscribers and revenue, it said.

Prudent cost management initiatives coupled with measures to enhance productivity contributed to help negate the adverse impact of increased operational expenditure. The company recorded a growth in key profitability indicators EBITDA and EBIT which increased by 21 per cent and 20 per cent, respectively compared to 2011. In absolute terms EBITDA reached Rs. 8.28 billion while EBIT was recorded at Rs 3.24 billion.

Profits before tax (normalised to exclude exchange loss) was Rs. 2.98 billion while post tax profit was 2.43 billion, recording a growth of 34 per cent and 38 per cent YoY respectively, the highest ever normalised profits recorded, the company added.