Mobitel reported an After Tax Profit of Rs.204 million for the first quarter of this year as against Rs.113 million losses in the fourth quarter of 2009, recording a 280 percent improvement.
The reported profit for the corresponding quarter of 2009 was Rs.250 million, but during that quarter the company enjoyed an exemption from corporate tax. The profit of Rs.204 million for the first quarter of 2010 has been reported after providing Rs.98 million against taxes.
The profit growth in the 2010 first quarter is a result of an impressive growth in revenue of the company since mid-2009.
According to the release, the heightened competition with the entry of the fifth mobile operator during first quarter of 2009 saw an escalating price war that eroded margins of all existing mobile operators and a pattern of customer switching between operators.
Mobitel too was not insulated from the industry developments and was forced to adjust to the market realities.
In absolute terms, Mobitel recorded a sales turnover of Rs.4.6 billion in the first quarter of 2010 compared to Rs.3.6 billion in the corresponding quarter of 2009, an increase of Rs.1 billion. This significant feat was possible due to a growth in the subscriber base by 766,000 since the first quarter of year 2009, despite the stepped up intensity in competition in the mobile telephony sector.
By the end of the first quarter of 2010 Mobitel reported a subscriber base of 3.58 million.