SLT Group posts Rs. 7.9b PAT, FY2020 | Sunday Observer

SLT Group posts Rs. 7.9b PAT, FY2020

14 February, 2021

Sri Lanka Telecom PLC (SLT) Group concluded financial year 2020, with a 25% YoY growth in profit after tax of Rs. 7.9 billion despite many challenges faced by the Group arising from the Covid-19 pandemic.

Group revenue climbed to Rs. 91.1 billion for the year with a six percent YoY growth, strongly underpinned by higher broadband revenue propelled by the accelerated fibre expansion program and growth in mobile broadband services. Revenue for PEO TV and career services also advanced during the year.

SLT Group increased EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) by 16% YoYto Rs. 34.7Bn in FY 2020, leading to a higher EBITDA margin of 38% compared to 35% in the previous year, mainly achieved through successful cost management measures. 

Group revenue forQ4 2020, rose by 4% QoQ to Rs. 24.0 bn, recording the highest quarterly revenue achieved for FY 2020. The operating profit for the quarter increased by 27% compared to the same quarter of the previous year reaching Rs. 1.9 bn, a decline of 33% compared to 3Q 2020. The Group profit after tax for the quarter reported at Rs. 1.1 bn, a drop of 48% QoQ, mainly due to the higher operating costs and adverse impact from fluctuation in foreign currencies.

Mobitel (Pvt) Ltd, the mobile arm of the SLT Group managed to grow its revenue despite adverse macroeconomic conditions prevalent in 2020. Mobitel reported a strong profitable growth due to simultaneous growth in revenue and reduction in operational expenditure. Mobitel revenue for FY 2020 stood at Rs. 43.2 bn, up by 8% compared to FY 2019.

Backed by the growth in revenue and aptly supported by operational efficiencies, Mobitel was able to record significant growth in all key profitability indicators. The Company recorded Rs. 3.1 bn improvement in EBITDA, an increase of 23% YoY. EBIT increased by Rs. 2.6 bn in FY 2020 which is an increase by 50% compared to FY 2019. Mobitel recorded its highest ever profit after tax of Rs. 4.9 bn in FY 2020, an increase by 54%YoY. 

The Group paid  Rs.17.1 bn as direct and indirect taxes including levies to the Government in FY 2020.

SLT Group Chairman, Rohan Fernando said, «Our financial results for 2020 yet again demonstrated that SLT Group›s resilience and success in providing essential telecommunication services to the country and community, notwithstanding unprecedented challenges arising from the Covid-19 pandemic. I am grateful to all our frontliners and staff for providing uninterrupted services to the country during challenging times.

“I am also very appreciative of the strong support given by the Government and will continue to work closely with the Government to support the national digitalisation initiatives through many initiatives. This year, we will focus on enhancing quality in our services and strengthening our strategy in fulfilling our customers’ needs,” he said.