Sri Lanka Telecom Group (SLT Group) recorded a consolidated revenue of Rs. 26.6 bn for Q1 2023, an increase of 2.1%, compared to the corresponding period last year.
The SLT Group’s revenue growth was mainly driven by SLT company revenue of Rs. 17.6 bn recorded for the quarter, an increase of 10.7%, from last year’s corresponding period.
Overall, SLT Group profitability was impacted by direct operational costs. At Group level, Direct Costs swelled to Rs. 15.9 Bn, an increase of 7.6% year-on-year, while at Company level it was at Rs. 9.8 Bn, a rise of 6.8%.
The escalation in costs was related to international payments, electricity tariff hikes and annual maintenance charges to foreign vendors. Administrative costs have also risen significantly to Rs 5.8 bn at Group level and Rs. 4.5 bn at SLT Company level for the quarter, an 8.7% and 7.4% increase.
On a positive note, depreciation and amortisation has been reduced, at SLT Group level by 13.6% and at Company level by 19%, reflecting the true value of assets. At Company level, SLT recorded a healthy YoY increase of 74.4% in operating profit. Overall, at Group level, Profit Before Tax has reduced by 54% YoY mainly driven by finance costs due to the massive increase in interest rates.
Eliminating forex losses shows an improvement in earnings at Company level for the quarter under review. Profit before Tax after eliminating forex loss at Company level is Rs. 1.1 Bn. The Group’s mix of foreign currencies supported Mobitel’s and VisionCom’s gain from the Rupee appreciation during Q1 compared to last year’s corresponding period due to bearing USD loans and liabilities. However, SLT incurred a loss because of its USD reserves.