SLT Group posts 23% growth in nine months | Sunday Observer

SLT Group posts 23% growth in nine months

Sri Lanka Telecom PLC (SLT) released its Company and Group financial results for the nine months ending September 30, 2018 last week.

The Group comprises the holding company Sri Lanka Telecom and its eight subsidiaries including mobile arm Mobitel (Pvt) Ltd. (Mobitel).

With a Year on Year (YoY) growth of 23.4%, the group reported Net Profit After Tax of Rs. 3.99 bn in the past nine months. The continued revenue growth of the group has largely contributed to the improvements in net profits.

The Group record Rs.60.1 bn revenue with an 6.6% YoY growth.

Resulting of better revenue growth coupled with cost control initiatives the Group recorded a strong EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) a margin of 31.1% while reporting Rs.18.7 bn EBITDA during the nine months under review with 15.8% YoY growth.

Net Profits of the group was impacted by foreign exchange losses of Rs.1.1 bn during the period under review. If the impact of respective loss was not the Net Profit After Tax was Rs.5.1 bn.

Group Chairman Kumarasinghe Sirisena said, “Despite the challenges in the economy we have been able to achieve a significant level of growth through strategic investments and strategic decision making of the Group.”

CEO of the holding company, Kiththi Perera said, “We are living in a fast paced digital era where the consumers needs and interest for Digital solutions such as Ultra-fast Fibre connectivity (FTTH), wireless 4G connectivity (LTE), and Cloud technologies are growing. It is our responsibility meet our customer needs. This is why we are transforming our Company to become a Digital Service provider.”

The holding company, SLT reported an outstanding YoY Net Profit growth of 75% to reach Rs.1.3 bn during the first nine months of 2018. The company continued to grow its revenue through its extensive investment programs carried out during the recent past to expand infrastructure facilities to provide high quality services to the customers through demanding technologies such as FTTH and LTE.

As a result, the company revenue increased by 5.6% to reach Rs.35.3 bn during the first nine months of 2018. The Company managed operating costs at Rs. 24.9 bn owing to the effective cost management initiatives.

The company EBITDA was reported at Rs.10.3 bn with 19.1% YoY growth. EBITDA margin improved to 29.3% from 26.0% in the same period of the previous year. Mobitel recorded a growth in EBITDA and EBIT (Earnings Before Interest Tax) for the first nine months of 2018 which grew by 10% and 16% respectively YoY which was aptly supported by operational efficiencies.

The net profit for the first nine months of 2018 was Rs. 2.5 bn. The depreciation of the rupee during the year triggered a considerable reduction in profits of the company. The company reported a net profit growth of 3.0%.