Aug 09, 2011 (LBO) – Sri Lanka Telecom, the island’s only wireline operator which also has a mobile unit, said its June 2011 quarter profits rose 49 percent to 1,142 million rupees with revenues flat at 12.4 billion rupees. The group reported earnings of 63 cents per share for the quarter and 1.35 rupees for the six months to June. The stock closed at 50.50 rupees, down 1.20 Tuesday.
The firm said operating costs fell 5 percent to 4.2 billion rupees and depreciation was flat at 2.8 billion rupees.
The firm said it has focused on cutting operating costs and boosting revenues from broadband and PeoTV an IPTV service.
Its wireline subscribers had grown 4 percent to 918,200 from a year earlier.
The group is majority state owned but its second largest shareholder is Malaysia’s UT group. SLT chairman Nimal Welgama said the firm was taking information communications technology to rural Sri Lanka in line with a government objective.
Mobitel, SLT’s mobile arm made an after tax profit of 778 million and notched up 4.4 million subscribers adding 650,000 new users.