Monday, 20 May 2019 08:26

SLT records highest ever quarterly profits

During the first quarter of 2019, the Sri Lanka Telecom Group reported a Net Profit of Rs.2.20 bn which is the highest ever during the first quarter of any year, with a remarkable 86.8% YoY growth compared to the same quarter in 2018.

The outstanding results were largely driven by healthy revenue growth coupled with cost control initiatives. Profits were further backed by Rs.172 mn FOREX gain reported during the quarter, in contrast to the profits negated by Rs.294 mn FOREX losses during the same quarter in the year before.

The group reported a revenue of Rs 21.3 bn during the period under review reflecting a 7.9% YoY growth. The growth momentum was significantly contributed to by fixed and mobile broadband services, PEO TV services, National Backbone Services, digital services, government and enterprise intelligent business solutions.

During the period the group has been able to manage its operational cost escalations at 4.6%, well below the revenue growth rate through better cost control initiatives, particularly in the holding company. This has resulted in enhancing the Group EBITDA by 15.3% YoY to Rs.7.0 bn and EBITDA margin to 33.0% during the quarter.

Kumarasinghe Sirisena, Group Chairman stated that “Achieving this excellent performance of highest ever profits during quarter one of any year, is not an easy matter and I applaud the decisions made and hard work done by my trusted and able team. The group continues with significant investments for National Digital infrastructure developments, facilitating the smart Sri Lanka initiatives and developing the digital economy of the country. We have already rolled out an Islandwide National high speed fiber Backbone Network assuring the digital infrastructure readiness for the entire nation with multiple state of the art technologies.”

The Holding Company has reported a Net Profit of Rs.1.15 bn during the quarter with remarkable YoY growth of 248%. The year on year company operational cost reduction by 2.7% and Forex gain of Rs20 mn in contrast to the Rs.233mn FOREX loss of the year before, have significantly improved the profits.

“With our ambitious plan to develop 2 million FTTH fiber broadband ports by 2022, we will be able to provide the most premium fiber broadband experience to our valued customers across the country. We have also invested in key fiber connectivity infrastructure programs to connect each and every corner of the country and the entire world from east to west,” said Kiththi Perera, Chief Executive Officer of the Holding Company.

Priyantha Fernandez, Chief Operating Officer (COO) of SLT added “Our aim is to focus on operational excellence in all segments with the customer at the forefront as always. I think with the progress and improvements that we have made in existing products and services as well as our new partnership ventures, I believes SLT is truly at the brink of the next level”

Mobitel Pvt Ltd, the mobile arm of the SLT continued to grow its revenue and key profitability indicators, despite intensifying competition in the market. Revenue for the first three months of 2019 increased to Rs.10.1 Bn, up by 6% compared to the corresponding period in 2018. The revenue growth was mainly driven by the increase in Broadband Services.

Revenue growth has contributed towards growth in all key profitability indicators for the first three months of 2019.

“During last year we invested in building our network and creating value to our customers. Mobitel was successful in recording strong growth with continued revenue growth while reporting profits in excess of Rs 1.1 Bn for the first quarter of 2019 which is an increase by 32% compared to first quarter of last year.” said Nalin Perera, Chief Executive Officer, Mobitel.

(Daily News)

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