Achieving a commendable performance including a turnaround in 2010 as opposed a loss in the previous year, Mobitel has posted a Rs. 1.94 billion profit before tax and surpassed the four million subscriber mark in 2010.
Mobitel’s parent Sri Lanka Telecom (SLT) last week said Mobitel posted a commendable performance in 2010 recovering from a dip in profits in 2009, with Profit Before Tax of Rs. 1.94 billion and a Profit After Tax of Rs. 1.51 billion, compared to Rs. 219 million and Rs. 395 million losses respectively in 2009.
“Profit after tax was achieved from a combined 30% growth in revenue, which was Rs. 20 billion, and the instigation of astute cost management initiatives,” SLT said.
It also said Mobitel’s remarkable growth in profit was posted despite having to provide for corporate tax of Rs. 431 million for 2010, while in comparison in 2009 the provision was Rs. 176 million – a liability that was due only from 1 July 2009 due to the expiry of the tax holiday granted to Mobitel.
Key drivers in revenue growth are attributed to a continued increase in prepaid services and mobile broadband gaining momentum, while a carefully executed strategy for value innovation and brand building through service excellence added further impetus to this drive.
Consolidating its position further, Mobitel also crossed the four million customer mark in 2010 despite an intensely competitive market.
Its EBITDA for 2010 reached Rs. 6.66 billion with a growth rate of 62% year on year. In absolute terms, the revenue of Rs. 20 billion in 2010 compared to Rs. 15.43 billion in the year 2009, an increase of over Rs. 4.58 billion, almost 30% year on year.