Challenging period in April-June 2022 for SLT

The Sri Lanka Telecom Group (SLT), the country’s largest telecom operator, has posted stable growth for the first half of 2022, with revenues increasing by 6 per cent to Rs 52.9 billion and a 19.8 per cent increase in profit before tax (PBT) at Rs. 7.2 billion against the same period last year, the company said on Tuesday,

The SLT Group’s EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) went up to Rs. 20.9 billion for the first half of 2022, recording a growth of 7.8 per cent compared to the corresponding period of the previous year. The EBITDA Margin stood at 39.7 per cent for the period under review.

Building on the success of the previous quarter, the SLT Group said it was able to maintain a positive momentum for Q2 2022 recording gains of 4 per cent in operating profit when compared to the previous quarter. The Group recorded a foreign exchange gain of Rs. 135 million during the quarter due to the prudent foreign exchange strategies of the Group.  However, profit after tax (PAT) declined by 26.5 per cent in Q2 compared to the previous quarter, mainly owing to the increase in income tax expenses during the period.

The Group continued its strategic plan implemented at the beginning of the year, consolidating its performance throughout Q2 as well. However, during the period from April to June, the Group faced several business growth challenges including an unprecedented economic crisis, import restrictions, inflationary pressures etc. Furthermore, ongoing investments were affected; new projects were also impacted due to the increase of operational costs and the energy and fuel crisis resulted in operational challenges. Overcoming uncertainties, the Group with resilience made headway in strategic investments, undertaking appropriate management controls, in addition to managing the revenue portfolio in multiple segments, it said.

Operating Cash Flows of the Group grew to Rs. 23.5 billion, up by 21.2 per cent year-on-year. The Group recorded a favourable cash and cash equivalents position of Rs. 27 billion as at the end of the reporting period. SLT Group’s contribution to the Government of Sri Lanka during the first half of 2022 amounted to Rs. 14 billion in direct and indirect taxes including levies and dividends.

SLT Group Chairman, Rohan Fernando said, “The period under review has been one of the most challenging periods that SLT-MOBITEL has faced in recent times exacerbated by a tough operating environment. However, due to the agility in our business model to deliver growth and a motivated team effort, we have been able to successfully generate positive results.”