Sri Lanka Telecom December quarter loss turns to profit

Mar 02, 2017 (LBO) – Sri Lanka Telecom group, the island's largest fixed line operator, said profits rose to 124 million rupees in the December quarter from 383 million rupee loss reported a year earlier. The group’s interim accounts reported earnings of 0.07 rupees per share for the quarter against a loss of 0.21 rupees per share recorded a year ago. In the 12 months to December, the group reported earnings of 2.65 rupees per share on total profits of 4.7 billion rupees. The company’s stock was last traded at 33.60 rupees on Wednesday. Sri Lanka Telecom revenues in the quarter were 18.

1 billion rupees, up six percent from 2015, and operating costs rose three percent to 13.9 billion rupees. During the year ended December 2016, the group has acquired assets at a cost of 31,069 million rupees excluding capitalized borrowing costs -- as at 31 December 2015 it was 12,390 million rupees. No dividend was declared by the company for the quarter ended 31 December 2016 though a dividend of 1,606 million rupees was paid 24 May 2016 for the financial year ended 31 December 2015. Percentage of public holding as at 31 December 2016 is 5.52 percent and number of shareholders representing the public holding is 12,213. Mobitel (Pvt) limited acquired 87.59 percent of shares of E-channeling through a voluntary offer for a total consideration of 641.85 million rupees. The transaction of the acquisition was completed on 14 September 2016. E-channeling has been consolidated as a subsidiary for the financial year ended 31 December 2016. The group is primarily involved in providing broad portfolio of telecommunication services across Sri Lanka.

The services provided by the group also include internet services, data services, domestic and international leased circuits, broadband, satellite uplink, maritime transmission, IPTV service and directory publishing service.