SHARE

Sri Lanka Telecom PLC, the national ICT solutions provider recorded an overall revenue growth of 9 percent year on year to Rs.16.7 billion during the first quarter of 2015, according to the group financial performance report for the period.

Accordingly, the group EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) was up by 34% to Rs.5.6 billion while EBITDA margin has improved to 33.3% compared to 27.2% of same quarter of the year before. In contrast to increase of revenue, remaining of operating cost at the same level of previous year, at Rs.11.1 billion, was reflected in EBITDA improvements.

The Group Net Profit increased to Rs.1.68 billion with a remarkable year on year growth of 207%. The increase was mainly driven by improvements in EBITDA, surpassing a negative impact of finance related cost increased by about Rs.391 million in absolute terms.

Despite the constant challenges on fixed line voice service, the holding company SLT has been able to record Rs.9.87 billion revenue with a 5% growth during the 1st quarter 2015 compared to same period of the year before. The growth was driven by local non-voice revenue streams such as Data and Broadband, Enterprise, SME,

The Operating cost of the company remained 6% below from the same quarter of the previous year resulting from effective cost controls apart from the impact to the operating cost of the previous year by one time charge resulting from an out of Court Settlement of a civil litigation.

Company EBITDA grew by 45% year on year to Rs.2.9 billion while EBITDA margin moved up to 30% from 21.4% of year before. Company Net Profit for the 1st quarter 2015 increased to Rs.700 million from Rs.36 million of same period of the last year with an exceptional growth, owing to improvements to the EBITDA.

SLT group Chairman P. G. Kumarasinghe Sirisena assured all the stakeholders of driving the group towards a sustainable growth aligning to the national agenda.

Group Chief Executive Officer Dileepa Wijesundera stated that he expects to mitigate the time taken to reach the capabilities which are created through large investment projects, to the market by way of services, so that customers will be more benefited while maximizing the returns on it investments to the company.

Mobitel continued to grow its revenue despite industry challenges. Revenue for the first quarter of 2014 grew by 12% to Rs.8.1 billion compared to the same quarter in the previous year. The revenue growth was mainly due to continued growth in voice services not withstanding industry slowdown.