Sri Lanka Telecom (SLT), profit before tax (PBT), profit after tax (PAT), revenue and all other key performance indicators showcased sustained improvement.
Having achieved numerous milestones last year, the Group, which released its financial results for the year ended December 31, 2011, has invested heavily for the future with Rs. 18 billion Capex, an increase of 176% YOY, whilst notching profit before tax of Rs. 6.53 billion, a YOY growth of 10% and profit after tax of Rs 4.78 billion, an increase of 21%, while recording a revenue of Rs 50.95 billion. At company level, Sri Lanka Telecom posted Rs. 4.8 billion, that is 21% growth in PBT, and an impressive 44% growth to Rs.3.56 billion in PAT.
SLT saw its wire 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.
With revenue growth driven by broadband, data and enterprise services, SLT is very focused on creating the optimum balance of revenue stemming from the right product mix. In 2011, there was an aggressive pursuance of business opportunities, while gaps that contributed to leakage or wastage, resulting in unnecessary expenditure, were identified.
Loss making or low margin product lines were rationalized, while the portfolio was consolidated. In tandem, increasing efficiencies became a key strategy of the overall business plan, which, supported through IT and process change, contributed to delivering a very positive impact on the Groupís bottom line, as is seen in the strong financial performance for the year.
It was these strategies that contributed to the improvement in EBITDA margins at both Company and Group level, seen at 31% and 34% respectively. Group net cash generated from operating activities also increased from Rs 15.2 billion in 2010 to Rs 20.5 billion, while at Company level, net cash generated from operating activities increased to Rs 13.3 billion from Rs 10.6 billion.
Group EPS increased from Rs 2.18 in 2010 to Rs 2.65 in 2011, an increase of 21%, which reflects the underlying consistent financial performance and increased shareholder value.