Business
SLT Group Revenue recorded at Rs. 24.7 Bn in Q1 2021, Net Profit improved by 14%
Sri Lanka Telecom PLC (SLT) Group released its financial results for the first quarter of 2021, with a remarkable 14.3% year-on-year growth in Profit After Tax (PAT) to Rs. 2.1 Bn.
The Group revenue went up to Rs. 24.7 Bn for the period with a 11.4% year-on-year growth, strongly underpinned by the growth in revenues of FTTH, 4G LTE, mobile broadband services, PEOTV services and carrier domestic services. International voice revenue reflected a de-growth while international revenues from global transit and global data soared compared to the same period last year.
The EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) of the Group improved to Rs. 9.7 Bn, a 13.6% year-on-year growth, lifting the EBITDA margin up to 39.4% from 38.6% in the same period last year. The surge in revenue largely contributed to the EBITDA growth. The growing capital expenditure in order to align with the global technological trends pushed the Depreciation and Amortisation of the Group up to Rs. 6.3 Bn, a 18.0% year-on-year increase.
The Operating Profit of the Group stood at Rs. 3.4 Bn, reflecting a 6.3% year-on-year growth resulting from the increase in Group EBITDA which was partly offset by the elevated Depreciation and Amortisation for the period. Interest expenses and finance cost charged to the Profit or Loss Statement increased to Rs. 0.8 Bn for the period under review while the FOREX losses declined to Rs. 0.3 Bn. The Profit Before Tax (PBT) rose to Rs. 2.8 Bn, up by 9.3% over the same period last year.
The growth in EBITDA coupled with the effective collection strategies of the Group almost tripled the Operating Cash Flow of the Group to Rs. 12.2 Bn for the period under review. Further, the Group managed to reduce the Long-Term Borrowings to Rs. 44.9 Bn as at the reporting date.
The holding company of the Group recorded an impressive 13.5% increase in revenue over the same period last year reaching Rs. 14.2 Bn. The PAT of the company went up to Rs. 1.4 Bn, reflecting a 16.2% year-on-year growth.
The mobile arm of the SLT Group, Mobitel (Pvt) Ltd too improved revenue for the quarter by 8.1% year-on-year to Rs. 11.6 Bn. The PAT of Mobitel soared during the period to Rs. 1.5 Bn which is a 65.4% year-on-year growth resulting from the increased revenue and the effective cost management measures.
The Group paid a total amount of Rs. 3.7 Bn as direct and indirect taxes including levies to the Government in the first quarter of 2021.
SLT Group Chairman, Mr. Rohan Fernando announced:
“I am extremely proud of my management team and my staff for delivering yet another solid quarter. Our business continued to accelerate in the first quarter with a double-digit growth in revenues and profits and with a robust operating cash flow. Consolidation of our Group Sales and Marketing under the SLT-MOBITEL unified branding contributed immensely in achieving the success we report in the first quarter. While uncertainty related to Covid-19 remains, we will stay focused on driving growth, building on favourable market trends, improving operational performance and delivering value for all our stakeholders.”
SLT Group Chief Executive Officer, Mr. Lalith Seneviratne remarked:
“Our first quarter financial performance represents a promising start to the year 2021. We commenced the year 2021 with the brand unification of SLT-MOBITEL which is another milestone in SLT Group’s legacy. The strategic journey of the SLT Group towards digital transformation has proven imperative with the present pandemic situation which has also demonstrated the critical role technology plays in everyday life. The Group remains resilient amidst the challenges posed by the Covid-19 pandemic owing to our robust business execution coupled with our attractive product portfolio.”
SLT Chief Executive Officer, Mr. Kiththi Perera stated:
“We are successfully progressing with our accelerated fibre expansion programme with an aim to provide ultra-speed Fibre-to-the-Home (FTTH) connections across the country. This year is pivotal to SLT since in mid-2021, SLT together with its mobile arm Mobitel aims at expanding and upgrading the present 4G network in view of providing an enhanced broadband experience and also to launch a pre-commercial 5G service using 3.5 GHz. In addition, SLT plans to invest in expanding its global network including the upcoming SEA-ME-WE 06 submarine cable system to connect to the world at the speed of Terra Bits per second. The domestic and global network expansions will be complimented by multiple digital initiatives in our efforts to continually improve customer experience and service levels.”
SLT Chief Operating Officer, Mr. Priyantha Fernandez commented:
“During this Covid-19 pandemic situation, SLT has provided an uninterrupted service to the nation and offered innovative yet affordable data packages to facilitate the shift towards work-from-home and study-from-home arrangements. Further, SLT in collaboration with Cisco and Millennium I.T.E.S.P. (Pvt) Ltd launched its new managed SD-WAN services to accelerate digitisation of enterprise and government customers in Sri Lanka. In addition, SLT-MOBITEL extended the PEO TV Go services to our mobile customers too to enjoy their favourite TV programmes.”
Mobitel Acting Chief Executive Officer, Mr. Chandika Vitharana added:
“As the world continues to go through a challenging era due to the ongoing pandemic, SLT-MOBITEL which provides an indispensable and critical service under the prevailing conditions was able to create value to all its stakeholders. As the National Mobile Service Provider, Mobitel, the mobile arm of the SLT Group is aggressively expanding the network to rural areas to ensure no one is left behind in these difficult and challenging times. Many initiatives were carried out during this period to make Broadband accessible to all. Affordable bundle device offers to help increase smartphone penetration, attractive application-based data plans, mobile and home broadband plans to facilitate work-from-home and learn-from-home conditions are a few of the initiatives devised to make Broadband affordable and accessible to all segments of the society according to their needs. While making broadband available to all, SLT-MOBITEL is committed to providing uninterrupted connectivity to the nation during these turbulent times.”
The Securities and Exchange Commission (SEC) of Sri Lanka is planning to introduce a Code of Ethics or a set of guidelines for the activities of capital market influencers to protect the public from ongoing scams involving the swindling money from potential investors in the share market.
“The market regulator has already identified Blue Ocean Securities Limited and Gladius South Asia as involved in such scams, which are being investigated by the relevant authorities, said Deputy Director General of the SEC Tushara Jayaratne.
The Deputy Director General also said that Gladius was using their their logo in a fraudulent manner to promote their business as well.
He said Blue Ocean has been involved in asking investors to start trading through an app named BOMate Nd. ‘Through this app, you can’t trade shares. But the money transaction goes through this app and the SEC system does not see these transactions, Jayaratne explained.
“The money is going somewhere else, Jayaratne told journalists at a media briefing yesterday held at the SEC auditorium, WTC building, Colombo.
Jayaratne said the SEC has already made complaints to both the Criminal Investigation Department (CID) of the police and the Financial Intelligence Unit (FIU) of the Central Bank.
The Deputy Director General said the second company, Gladius South Asia, has been involved in asking investors not to invest their money in the local stock market, but to do so in the markets in foreign countries.
He also said that the SEC has adopted 12 key capital market development projects to increase the number of capital market investors.
“The Introduction of a Code of Ethics and guidelines for registered investment advisers will help to develop the market in an efficient and effective way, he said.
Jayaratne, however, said that the Sri Lankan share market is not full of scams and that people can have confidence in the market.
“Our market is somewhat free and fair. From the perspective of investors, you also have a responsibility to be careful when investing in the market, he added.
By Hiran H Senewiratne
Norway is providing more than USD 2.4 million to assist those affected by severe flooding in Sri Lanka.
“Norway is contributing emergency assistance to people who have lost both their homes and livelihoods in Sri Lanka. A rapid response is crucial to ensure that those affected have shelter, food, healthcare and support to rebuild their communities,” said Norway’s Minister of International Development, Åsmund Aukrust.
The United Nations estimates that nearly 11 million people have been impacted by catastrophic floods and landslides across large parts of South and Southeast Asia. Sri Lanka, Indonesia, Thailand, Vietnam and Malaysia have experienced record rainfall since 17 November. In total, approximately 1,600 people have lost their lives, and 1.2 million have been forced to leave their homes. Critical infrastructure such as houses and roads has been destroyed, and health risks are increasing due to waterborne diseases and poor sanitation.
“Norway is now contributing NOK 20 million (approx. USD 2 million) to the Red Cross Movement and the UN system in Sri Lanka. These organisations have presence in the country and the capacity to respond quickly based on local needs,” Aukrust said.
Sri Lanka is among the hardest-hit countries. On 28 November, Cyclone Ditwah struck the country, bringing heavy rain and strong winds. The cyclone triggered landslides and caused the most severe floodsing in recent history. The Sri Lankan authorities have led the search and rescue operations and allocated significant resources for immediate relief. “When disasters of this magnitude occur, it is vital that the international community and countries like Norway step up and support local actors in managing the crisis,” Aukrust said.
In addition, the UN Central Emergency Response Fund (CERF) has allocated USD 4.5 million for flood response in Sri Lanka. Around one in ten dollars in the fund comes from Norway.
Norway is also assisting flood-affected communities in Sri Lanka through an immediate response mechanism in the World Food Programme (WFP). The International Labour Organization (ILO) has re-allocated around USD 100,000 in a Norway-funded job generation project, to assist flood-affected participants. Furthermore, Norway has funded a UN expert to help coordinate ongoing relief efforts in the affected areas.
Janashakthi Finance PLC, formerly known as Orient Finance PLC and a subsidiary of JXG (Janashakthi Group), announces the appointment of Sithambaram Sri Ganendran as the Chief Executive Officer.
Sri Ganendran, who has held the position of Chief Operating Officer since September 2024, stepped in as Acting Chief Executive Officer during the past four months.
He brings with him almost 27 years of extensive experience in banking. Throughout his extensive career, he has held senior management roles in multiple local and international banks, where he acquired in-depth knowledge in operations, branch banking (across retail and SME sectors), operational risk, business continuity management, business integration, process reengineering, operational excellence, sales governance and credit card operations. He holds a plethora of qualifications including an MBA from American City University. He is a Fellow of the Chartered Institute of Management Accountants (CIMA) in the United Kingdom, and an Associate Member of the Chartered Institute of Securities and Investments (CISI), and a member of the Association of Professional Bankers of Sri Lanka.
Rajendra Theagarajah, Chairman of Janashakthi Finance PLC, said, “We are delighted to welcome Sithambaram Sri Ganendran to this important leadership role at a pivotal moment in our journey. His wealth of experience, proven track record, and people-focused leadership style make him well suited to strengthen and guide Janashakthi Finance, ensuring efficient continuity in all ongoing operations.”
The appointment of Sri Ganendran as Chief Executive Officer, reinforces Janashakthi Finance’s deep commitment to seamless operations and growth. It also underscores its dedication to vision of delivering trusted financial solutions, while continuously exploring opportunities for innovation and expansion to serve its customers and communities more efficiently.
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