SLT Group 1Q 2018 EBITDA up by 8.5% to Rs. 6.1 bln
Sri Lanka Telecom PLC has reported EBITDA or Operating Profit before depreciation and amortisation of Rs. 6.1 billion during 1st quarter 2018, with a year- on- year ( y- o- y) increase of 8.5 per cent.
However, the company noted in a media release this week that … “Large investments made by the group during the recent years have continued to affect the company profits adversely due to mainly the increased charges in depreciation”.
Group depreciation and amortisation increased by Rs. 512 million in absolute terms showing a 12.8 per cent y-o-y increase to Rs.4.5 billion and this rise resulted in a marginal drop in group operating profit to Rs. 1.58 billion compared to Rs. 1.62 billion in the corresponding period of previous year.
The release said that controlling of cost escalations while sustaining revenue growth resulted in better EBITDA levels. Group revenue for the quarter under review was reported at Rs. 19.8 billion with y- o- y growth of 5.9 per cent, while operating cost was reported at Rs. 13.7 billion, a y-o-y increase of 4.7 per cent.
SLT has largely invested in new technology and capacity expansion of LTE, FTTH, IPTV, Global connectivity and Mobile services in catering the expanding customer base and providing more services.
The gamut of SLT’s investments in the recent past also included the expansion of National Backbone Network, launching of its newly built state- of- the- art Tier 3 Data Centre the country’s first ‘ Purpose built tier 3 Data Centre’, SEA-ME-WE 5 undersea cable system, and newly established cable landing station in Matara within the third quarter. SLT said it was also committed to further oversee South Asia’s first cutting-edge submarine cable depot in the Galle Port.
The release said the holding company reported Rs. 3.5 billion EBITDA or Operating profit before depreciation and amortisation with y- o- y growth of 13.2 per cent.
Despite the higher depreciation and amortisation challenging the profitability, its investments have largely enhanced the company asset base. Further the company expects robust profitability in the future by sustainable growth in revenues through capacity utilisations and effective cost management, the release added.