Sri Lanka Telecom posts Rs. 6 billion post-tax profit in first half of 2021 - Opportunity Sri Lanka
Sri Lanka Telecom posts Rs. 6 billion post-tax profit in first half of 2021

Sri Lanka Telecom posts Rs. 6 billion post-tax profit in first half of 2021

Sri Lanka Telecom (SLT)-Mobitel has announced its financial results for the first half of 2021, posting a 29.9% year-on-year growth of group profit after tax (PAT) of Rs. 6.0 billion. Cost consolidation across verticals and a group-wide undertaking to minimise waste, convert waste to cash, and manage OPEX cost resulted in the healthy bottom-line, according to local media reports.
SLT-Mobitel ensured its customers benefited most during the tough pandemic period, with improved service levels, upgraded infrastructure, and innovative product offers, the group has announced.
SLT group revenue has grown to Rs. 49.9 billion in the period under review, a 13.3% increase against the comparable period in the previous year, driven by the focus on business continuity despite the coronavirus pandemic.
According to reports, the earnings before interest, tax, depreciation, and amortisation (EBITDA) of the group stood at Rs. 19.6 billion, a 10.0% year-on-year growth, whilst operating profit for the group was Rs. 7.2 billion, reflecting a 4.2% growth over the first half of 2020.
The group revenue for Q2 2021 has grown by 15.2% compared to the same quarter of the previous year to Rs. 25.3 billion, lifting the EBITDA and operating profit to Rs. 9.9 billion and Rs. 3.8 billion, respectively.
The group PAT for the quarter has been reported at Rs. 3.8 billion, a 40.7% year-on-year growth.
Top-line growth can be attributed to customer-focused delivery of essential products and services, during the pandemic period. SLT-Mobitel strived to provide residential Fibre connectivity and to increase PEO TV and mobile services as customer demand grew. This strategy led to more customer acquisition, aided by value-added services, competitive pricing, and the launch of innovative consumer-centric services such as unlimited data packages, local media reports stated.
SLT Group has continued its contribution to the Government of Sri Lanka during the first half of 2021, paying a total of Rs. 10.3 billion in direct and indirect taxes including levies, and dividends.
The group has also committed to long-term infrastructure investments positively impacting the quality of digital connectivity in Sri Lanka, including the investments in submarine cable networks, backbone infrastructure, and ongoing capital infusion on an extensive island wide fiber optic network, 4G towers, and base stations, amongst these.
SLT Group Chairman Rohan Fernando has been quoted as saying, “SLT-Mobitel is truly the Sri Lankan telecommunication company, and we are fully committed to serve the nation and its people. We are working closely with the Government of Sri Lanka on national ICT and telecommunication programmes to ensure all Sri Lankans are connected to bridge the digital divide.”
“The growth for SLT-Mobitel in the period under review has come as a direct result of our service quality. Our efforts to drive prices down and improve our customer service, has been welcomed by residential customers who consume voice connectivity, mobile and fixed data, and PEO TV. Our enterprise and small business customers, who have counted on us for business continuity during the pandemic, have also benefited from our customer-centric solutions. Meanwhile, our brand unification as SLT-Mobitel at the beginning of 2021 is already reaping synergy with decreased costs, and magnified visibility especially in a tough economic backdrop,” SLT Group Chief Executive Officer Lalith Seneviratne has also been quoted as saying.

OSL take:

The profits posted by Sri Lanka Telecom is indicative of the strength and growth of the country’s business sector, especially in the ICT and digital infrastructure development sectors. The ongoing economic expansion in the country along with Sri Lanka emerging as a business destination in the South Asian region given it’s geographical positioning in the Indian ocean and the many trade agreements as well as trade concessions enjoyed by the country have further boosted business/investment opportunities in the island. Foreign businesses/investors could therefore confidently explore business/investment opportunities in Sri Lanka’s ICT and digital infrastructure development sectors.

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Article Code : VBS/AT/06082021/Z_8

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