Sri Lanka Telecom achieves 55% YoY growth in its operating profits in the first half of 2020
Sri Lanka Telecom PLC (SLT) Group has reportedly achieved a 55% YoY growth in its operating profits to Rs. 6.9 billion in the first half of 2020 amidst the many challenges caused by the Covid-19 pandemic.
The Group revenue has reportedly reached Rs. 44.1 billion during the first six months of 2020, which the SLT noted demonstrates a moderate growth of 3.6% YoY, primarily due to the relief packages and free data offers to customers by SLT together with its mobile arm Mobitel Ltd., to assist the customers during the pandemic.
The unexpected delays in investment projects owing to the pandemic had also impacted adversely on the top line. Nevertheless, surge in utilisation in Broadband, IPTV and Career Business services in both residential and business sectors due to the work from home arrangements and temporary closure of many educational and business entities, had lifted the revenues of the Group.
According to reports, stringent cost management measures had 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 billion, up 25% YoY.
The achievement recorded by SLT is indicative of the strength and growth of local businesses, especially in the telecommunications and ICT sectors. The environment created by the global Covid 19 pandemic has also expanded business/investment opportunities in the telecommunications industry. Foreign businesses/investors could explore opportunities in Sri Lanka’s telecommunications industry given its high performance and positive returns.
|Article Code :||VBS/AT/17082020/Z_6|