SLT group revenue up by 6%, with healthy EBITDA margins, in 1st nine months - 2015 Sri Lanka Telecom, the national telecom services provider released its company and group financial performance, for the 3rd quarter 2015. The group comprises of Sri Lanka Telecom and its eight subsidiaries including mobile arm Mobitel (Pvt) Ltd., (Mobitel).
The group reported Rs. 50.8 bn revenue during the nine months ending in September 2015 with 6% year on year growth with both fixed and mobile telephone segments contributing to the success.
The group has reported a healthy EBITDA margin of 32.3% during the period under review against the 30.9% of the same period of last year due to maintenance of higher revenue growth than the rate of operating cost escalation. The operating cost of the group was reported at Rs. 34.4 bn with a year on year growth of 4%, while the EBITDA grew by 11% to Rs. 16.4 bn during the 1st nine months of 2015, when compared to the same period of the previous year.
Depreciation and amortizations remains at the same level of Rs. 9.8 bn, compared to the previous year. Bottom-line of financials of the group was largely negated by provisions for foreign currency translation losses relating to foreign currency denominated borrowing due to the sudden depreciation of the LKR against the USD. Most of the borrowings of the group are dollar denominated as to gain low interest costs. Since, the repayments are going through the internally generated foreign denominated revenues, provisions for translation losses are generally not impacting the group cash-flows.