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Mobile Profits

Feb 23, 2011 (LBO) - Sri Lanka's Mobitel, a unit of Sri Lanka Telecom said it had made profit after tax of 1.

51 billion rupees (13.7 million US dollars) in the year to December 2010 turning around from a loss of 395 million a year earlier.
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Sri Lanka's telecom regulator put in floors to keep up prices.

A Sri Lanka Telecom statement said revenues were driven by prepaid services and mobile broadband was also increasing.

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The firm said it had notched up 4 million subscribers "despite an intensely competitive market.

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" Dialog Telecom claims 7.0 million subscribers and Etisalat 3.5 million.

The firm said earnings before interest, tax, depreciation and amortization was 6.6 million rupees up 62 percent.

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The firm said revenues grew 30 percent to 20 billion from 15.43 billion rupees a year earlier.

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The firm has paid 431 million rupees in tax, up from 176 million a year earlier with the end of a tax holiday.

Sri Lanka's celco's lost money until 2009 with a steep price war triggered by the entry of India's Airtel as the fifth player. Mobitel itself was hit by a cut price plan given to state workers.

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Sri Lanka Telecom is 49.5 percent state-owned.
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