Tuesday, March 1, 2016

Sri Lanka Telecom in the red

ECONOMYNEXT - Sri Lanka Telecom, the country's sold wireline operator, which has a mobile unit, has lost 383 million rupees in the December 2015 quarter, against a profit of 643 million rupees a year earlier.

The group reported earnings of 21 cents per share. In the year to December SLT reported earnings of 2.06 rupees per share on total profits of 3.7 billion rupees, down 34 percent.

The group said revenues barely rose 1 percent 17.1 billion rupees in the December 2015 quarter and cost rose 4 percent to 13.59 billion rupees shrinking gross profits 8 percent to 3.58 billion rupees.

Depreciation rose 5 percent to 3.19 billion rupees and operating profits were down 66 percent to 235 million rupees.

The group was hit by a 366 million loss on forex borrowings as the rupee fell amid money printing by the Central Bank.

A statement from the group said Kumarasinhe Sirisena the group chairman "was upbeat about the investment friendly conditions that prevail in the country."

The firm said the firms bottom line was hit by additional taxes imposed by the government during 2015 such as the mobile operator levy of 250 million rupees and prepaid recharge tax given away in the form of a bonus to the customer.

Chief Executive Officer Dileepa Wijesundera the group had invested 20 billion rupees and were focussing on higher quality with new technology.

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