Sri Lanka Telecom (SLT) for the year ended December 31st 2011 recorded a profit after tax (PAT) of Rs. 4.78 billion, up 21%, while recording revenues of Rs. 50.95 billion, a SLT statement said. It added that SLT has invested heavily for the future with Rs. 18 billion and that its profit before tax (PBT) was at Rs. 6.53 billion, which is a growth of 10%. At company level, Sri Lanka Telecom posted Rs. 4.8 billion that is 21% growth in PBT, and a 44% growth to Rs.3.56 billion in PAT.
SLT in the past year saw its fixed line revenue stabilise, arresting the declining trend that emerged about five years ago.
There was also significant growth contribution from non-traditional revenue streams, mainly fixed broadband, wholesale and enterprise sales, while mobile revenue also displayed a growth of 7% to stand at Rs. 21 billion, the statement said.
It added that last year there was an aggressive pursuance of business opportunities, while gaps that contributed to leakage or wastage, resulting in unnecessary expenditure were identified. The statement said that loss making or low margin product lines were rationalised, while the portfolio was consolidated. Company operating costs reduced by 5%, primarily due to the reduction in volume driven expenses and significant reduction in bad debts, the statement added.
At Group level, the increase in operational costs was a marginal 1% while at company level, net cash generated from operating activities increased to Rs 13.3 billion from Rs 10.6 billion. SLT's subsidiary, Sri Lanka Telecom Mobitel, continued to grow its market share, while reporting a growth in all profitability indicators for 2011 compared to the previous year, the statement added. Mobitel posted a PBT of Rs. 2.06 billion, an increase of 6% from last year's Rs.1.94 billion.