SLT Group posts Rs. 4.6b PAT | Sunday Observer

SLT Group posts Rs. 4.6b PAT

Sri Lanka Telecom PLC (SLT) Group released its financial results for the first-half of 2020 recording a 55% YoY growth in its Operating Profits to Rs. 6.9 bn, amidst the many challenges caused by the Covid-19 pandemic.

The Group revenue reached Rs. 44.1 bn during the first six months of 2020 demonstrating a moderate growth of 3.6% YoY, primarily due to the relief packages and free data offered to customers by SLT together with its mobile arm Mobitel (Pvt) Ltd, to assist the customers during the pandemic.

The unexpected delays in investment projects owing to the pandemic too impacted adversely on the top line. Nevertheless, surge in the use in Broadband, IPTV and Career Business services in residential and business sectors due to the work from home arrangements and temporary closure of many educational and business entities, lifted the revenues of the Group.

Stringent cost management measures reduced the Operating Costs before Depreciation and Amortisation by 7% YoY, raising EBITDA margin to 40.5% from 33.4% in the year before. EBITDA of the Group stood at Rs. 17.8 bn, up 25% YoY.

The Interest Expenses and Finance Costs rose to Rs. 1.4 bn from Rs. 0.6 bn as a result of increased borrowings to finance the growing capital expenditure in order to align with the global technological trends and fulfilling the changing customer demands. FOREX losses of the Group mounted to Rs. 0.9 bn from Rs. 15 mn in the same period last year due to the depreciation of Sri Lankan Rupee against USD, arising from the adverse impact of the Covid-19 pandemic. Other Income of the Group grew to Rs. 0.5 bn, up 85% YoY which improved the Group profits.

Group Profit Before Tax (PBT) was Rs. 5.7 bn, while Profit After Tax (PAT) was Rs. 4.6 bn, demonstrating a YoY increase of 31%.

Growth in revenue coupled with efficient cost management techniques pushed the PAT margin up to 10.4% from 8.2% for the corresponding period a year earlier.

SLT Group Chairman Rohan Fernando said, “I believe that leading with empathy and a sense of connection with employees, business and community partners, and customers is the root cause of our success.”

Group CEO Lalith Seneviratne said, “We have made several initiatives with an eye towards reaping synergies within the holding company and subsidiaries in the long term.”

CEO, SLT, Kiththi Perera said, “SLT as a responsible corporate citizen is engaging in a variety of CSR activities including the donation of one million face masks.” COO Priyantha Fernandez said, “We are continuing our journey to increase fibre footprints across the country to provide an ultra-speed experience to customers.”