Thursday, November 27, 2008

Sri Lanka Telecom earnings fell 31 per cent on stiff competition

Sri Lanka Telecom Ltd (SLT) - which Malaysian billionaire T. Ananda Krishnan indirectly controls more than 35 per cent - saw its Q3 net profit down by almost one-third after reducing call rates at its mobile phone unit (Mobitel).

Mobitel is trying to close its gap with Dialog Telekom Ltd (controlled by TM International), by offering cheaper packages for state workers.

It is also investing heavily to expand its network. In September, it borrowed US$45 million, part of it will be used to fund its high-speed network expansion outside Colombo.

Net profit dropped to 1.24 billion rupees during the quarter, against 1.8 billion rupees a year ago.

Global Telecommunications Holdings NV, a subsidiary of Usaha Tegas Sdn Bhd, owns over 35 per cent in SLT. The Sri Lankan government also owns 49.5 per cent in SLT.

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