SLT Chairman, Kumarasinghe Sirisena | CEO of SLT Group, Dileepa Wijesundera

Sri Lanka Telecom PLC (SLT), the national ICT solutions provider released financial statements of the 1st Quarter 2016 of the Company and Group. The group consists of 8 subsidiaries including the mobile operator Mobitel (Pvt) Ltd.

The group’s focus in providing state of the art services by introducing new technologies and expanding the available infrastructure, results in reporting Rs. 18.4 bn revenue during the 1st quarter 2016 with a year on year growth of 10%. The group expects to maintain this trend through recently introduced FTTH (Fiber-to-the-Home) and LTE (Long-Term-Evolution), service packages, which is the future of modern telecommunications.
Owing to the increase of operating costs and depreciation, the operating profits of the group remained flat at Rs. 2.3 bn. In addition, recent indirect tax changes have resulted in cost increases.

Before and after tax profits of the group were recorded at Rs. 2.2 bn and Rs. 1.7 bn respectively with year on year growth of 4% and 3%. Annualized EPS of the group reported at Rs. 3.82.

The holding Company SLT was able to earn Rs. 10.8 bn revenue during the quarter under review reporting a 10% year on year growth. The growth was driven by the expansions and introduction of new technology. The operating costs have escalated by 14% year on year to Rs. 7.9 bn during the quarter.

In line with continuous investments in expansion, the depreciation of the quarter was increased by 7% year on year to Rs. 1.9 bn. The operating profit of the quarter reported at Rs. 0.9 bn with 13% drop from the same period of the previous year. Escalations of operating costs and depreciation have resulted in the drop in profits. The Company’s before and after tax profits were flat at Rs. 1 bn and Rs. 0.7 bn respectively during the 1st quarter 2016.