Thin Margins

May 25, 2009 (LBO) – Sri Lanka Telecom group said profits fell 42 percent to 974 million rupees in the March 2009 quarter with fixed access revenues falling while the mobile sector showed growth.

Chairperson Leisha De Silva Chandresena said the firm’s performance came amid adverse economic conditions worldwide.

The firm said broadband and data revenues grew 25 percent to 1,595 million rupees during the quarter.

SLT said it had submitted a claim to the regulator to get rebate from a levy on international termination fees. Though the charge had been recognized the estimated refund has not been included in the accounts, the company said.

SLT said Mobitel has issued 6.75 billion rupees of 12 percent, and 1.5 billion rupees of 14 percent cumulative preference shares and dividends of 1.65 billion rupees have not been recognized in the accounts.

Updated Group revenue, which includes the mobile unit Mobitel, increased 2 percent to 11,897 million, while stand-alone company revenues fell 11 percent to 8.3 billion rupees.

Wireline revenues fell to 3.7 billion rupees in the March 2009 quarter from 4.4 billion rupees last year, while CDMA (code-division-multiple access)