Sri Lanka Telecom Group (SLT Group) recorded a consolidated revenue growth of 5.4% amounting to Rs 26 bn in Q1 2022, in comparison to the corresponding period in the previous year.
Group Profit After Tax (PAT) was recorded at Rs. 2.7 bn, demonstrating the SLT Group’s resilience despite challenging economic conditions. Beginning the new year, the Group continued its focus on digital transformation agenda, streamlining the cost base and automating processes while delivering and creating value for stakeholders and the nation.
SLT Group’s EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) recorded a 9.9% YoY growth to stand at Rs. 10.7 bn with the EBITDA margin improvingto 41% for the quarter against 39.4% in the corresponding period of the previous year. The Group recorded a Profit Before Tax (PBT) of Rs 3.5 bn for the quarter.
The Group’s revenue growth was primarily driven by the increased broadband revenues resulting from the ongoing accelerated Fibre Expansion Project under the National Fiberisation Program and due to the expansions and upgrades in the 4G/LTE network.
The investment towards fiberisation and the aggressive roll-out and marketing of fibre solutions paid off as it contributed to achieve Q1 targets for the Group with increased consumer demand. The Group saw an increase in PEOTV revenues due to the accelerated Fibre Expansion Project. The Group’s revenue from Career Domestic services too improved during the period.
SLT Group Chairman, Rohan Fernando said, “The first quarter of 2022 proved more challenging than we had expected, however SLT-MOBITEL overall performance reflected the resilience and strength of our portfolio. Throughout 2022 we aim to continue to deliver value for all stakeholders reinforcing our support to bridge the digital divide serving the Nation and our people. Prudent financial discipline was also a key factor in our success.”
The Operating Cash Flows of the Group grew to Rs. 16.3 bn, up by 35.3% YoY. The Group recorded a favourable cash and cash equivalents position of Rs. 31.6 bn as at the end of the quarter. SLT Group’s contribution to the Government during the first quarter, 2022 amounted to Rs. 4.2 bn. in direct and indirect taxes including levies.
The Mobile services arm of the Group, Mobitel (Pvt.) Ltd, sustained revenues at previous levels, earning Rs 11.6 bn in the Q1 2022. Both EBITDA and Operating Profit margins remained positive at 38.9% and 19.3% respectively, whilst foreign exchange losses negatively affected the bottom line of the Company, resulting a net loss of Rs. 0.8 bn for the quarter.
The SLT Group hopes to implement several key strategies to meet the economic slowdown and the challenging operating environment that includes cost increases, inflation, rupee depreciation against US dollar and delays in importing equipment.
Consolidating infrastructure at group level, restructuring field staff to work smarter, encouraging and deploying more staff to work from home, offering value addition to all customer segments, and a focus on delivering long-term financial performance through a more sustainable business model are among these strategies.