SmarTone, SLT laud major profit gains
February 24, 2011
Asian operators SmarTone and Sri Lanka Telecom both yesterday published financial results showing significant profit gains.
Hong Kong's SmarTone said it nearly tripled its December-half profit to HK$321 million ($41.2 million), from HK$111 million the year before, on strong service revenue and device sales growth.
Revenue grew 52% to HK$2.75 billion. Service revenue grew 29% to HK$2.1 billion, while device sales increased 307% to HK$614 million.
The company's Hong Kong customer base grew 17%, despite what the company called “a very competitive market.” Blended ARPU from the region grew 12% to HK$241.
SmarTone's Macau operations swung to an operating profit of HK$16 million, from a loss of $19 million in the same period a year ago. Revenue grew 18%, but ebitda fell 32% on rising operating expenses.
Sri Lanka Telecom yesterday revealed it had grown its 2010 profit 407% to 3.94 billion Sri Lankan rupees ($35.6 million).
Group revenue grew to a record 50.25 billion rupees, thanks largely to the performance of mobile arm Mobitel.
Parent company SLT saw its revenue fall slightly to $33.3 billion, but still managed a 101% growth in net profit as a result of cost-cutting and restructuring. Ebitda margins stayed flat at 30%.
The group also swung to a positive free cash flow of 8.8 billion rupees, from a 2 billion rupee deficit in 2009.
Phil Marshall / Tolaga Research
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