SLT Group records Rs. 2.7 bn after tax profit

Sri Lanka Telecom Group (SLT Group), the National ICT solutions
provider, recorded a Group Profit After Tax (PAT) in Q1 2022 of Rs.
2.7 billion, despite challenging economic conditions.

Consolidated revenue recorded a year-on-year (YoY) growth of 5.4% to
Rs. 26 billion in the same period, in comparison to the corresponding
period in the previous year.

SLT Group Chairman Rohan Fernando stated: “The first quarter of 2022
proved more challenging than we had expected; however SLT-MOBITEL’s
overall performance reflected the resilience and strength of our
portfolio. Throughout 2022, we aim to continue to deliver value for
all stakeholders reinforcing our support to bridge the digital divide
serving the Nation and our people. Prudent financial discipline was
also a key factor in our success.”

Beginning the new year, the group continued its focus on the digital
transformation agenda, streamlining the cost base and automating
processes while delivering and creating value for stakeholders and the
nation.

SLT Group’s EBITDA (Earnings Before Interest, Tax, Depreciation, and
Amortisation) recorded a 9.9% YoY growth to stand at Rs. 10.7 billion,
with the EBITDA margin improving to 41% for the quarter against 39.4%
in the corresponding period of the previous year. The Group recorded a
Profit Before Tax (PBT) of Rs. 3.5 billion for the quarter.

SLT Group CEO Lalith Seneviratne added: “We continue to invest in the
best of emerging technologies, including networks and digital
capabilities, and continue our efforts to deploy an innovative
portfolio of products and services implementing the transformation of
the Company. Our considerable infrastructure investment allows us to
continue innovating and improve customer experience.”

The group stated that its revenue growth was primarily driven by the
increased broadband revenues resulting from the ongoing accelerated
fibre expansion project under the National Fiberisation Programme and
due to the expansions and upgrades in the 4G/LTE network. The
investment towards fiberisation and the aggressive roll-out and
marketing of fibre solutions paid off, as it contributed to achieve Q1
targets for the group with increased consumer demand. Further, the
group saw an increase in PEO TV revenues due to the accelerated fibre
expansion project. The group’s revenue from career domestic services
too improved during the period.

The Operating Cash Flows of the group grew to Rs. 16.3 billion, up by
35.3% YoY. The group recorded a favourable cash and cash equivalents
position of Rs. 31.6 billion as at the end of the quarter. SLT Group’s
contribution to the Government of Sri Lanka during the first quarter
of 2022 amounted to Rs. 4.2 billion in direct and indirect taxes,
including levies.

Sri Lanka Telecom PLC (SLT), the holding company of the group,
recorded Rs. 4.1 billion, in Profit After Taxes for Q1 2022. Revenue
for the quarter recorded at Rs. 15.9 billion, whilst the EBITDA and
Operating Profits stood at Rs. 6.3 billion and Rs. 1.1 billion,
respectively.

SLT CEO Janaka Abeysinghe commented: “We are on track for business
growth and improved profitability, driven by rapid adoption of
broadband services, fiberisation and increased bandwidth consumption,
which is generating robust demand. My team is focused on growth. We
are committed to re-invigorating our core broadband and fixed
operations while pursuing modernization of our infrastructure. We will
continue to work to maintain this positive momentum throughout 2022.”

The Mobile services arm of the Group, Mobitel (Pvt.) Ltd, sustained
revenues at previous levels, earning Rs. 11.6 billion in the Q1 2022.
Both EBITDA and Operating Profit margins remained positive at 38.9%
and 19.3%, respectively, whilst foreign exchange losses negatively
affected the bottom line of the company, resulting in a net loss of
Rs. 0.8 billion for the quarter.

Mobitel CEO Chandika Vitharena stated: “Even in these unprecedented
times, we are poised to capitalise on the growing need to simplify
communications. As the National Mobile Service Provider, we
continually aim to introduce next-level solutions driven by the
digital acceleration across our market segments, delivering
superlative customer experience.”

The SLT Group stated it is looking to implement several key strategies
to meet the economic slowdown and the challenging operating
environment that includes cost increases, inflation, rupee
depreciation against the US dollar, and delays in importing necessary
equipment. Consolidating infrastructure at group level, restructuring
field staff to work smarter, encouraging and deploying more staff to
work from home, offering value addition to all customer segments, and
a focus on delivering long-term financial performance through a more
sustainable business model are among these strategies.

Source: The Morning News Paper