Business
SLT Group net profit up by 35%, revenue recorded at Rs. 67.2 bn. in first nine months 2020
The broadband revenue of the Group surged significantly over the same period last year underpinned by the increase of FTTH (Fiber-to-the-Home) footprints across the country by the ongoing accelerated Fiber Expansion Program by SLT and the increase of mobile broadband services by Mobitel (Pvt) Ltd. PEOTV revenues too soared during the period under review. However, the Group experienced a de-growth in Voice revenues in both SLT and Mobitel (Pvt) Ltd.
The Group’s stringent cost management measures maintained the Group’s Operating Costs before Depreciation and Amortization at the same level compared to last year, pushing the EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) margin up to 39.3% from 34.9%. The EBITDA increased to Rs. 26.4 Bn, up by 18.4% YoY. The Depreciation and Amortization of the Group increased by 9.8% YoY to Rs. 16.7 Bn. The Group recorded an impressive growth in Operating Profits of 37.0% YoY to Rs. 9.7 Bn mainly due to the elevated EBITDA of the period.
The Interest Expenses and Finance Costs rose to Rs. 2.1 Bn from Rs. 1.4 Bn YoY as a result of increased borrowings to finance the growing capital expenditure in order to align with the global technological trends and fulfilling the changing customer demands. FOREX losses of the Group mounted to Rs. 0.8 Bn from Rs. 58 Mn in the same period last year stemming from the depreciation of the Sri Lankan Rupee against USD, mainly due to the adverse impacts during the early stages of Covid-19 pandemic.
Group Profit Before Tax (PBT) recorded at Rs. 8.3 Bn, a 18.9% growth compared to the year before, while Profit After Tax (PAT) posted at Rs. 6.7 Bn, demonstrating a YoY increase of 35.4%. The PAT margin went up to 10.0% from 7.8% for the same period the year earlier.
During the first nine months of 2020, SLT Group paid out a total of Rs. 11.8 Bn as Direct and Indirect Taxes and Levies to the Government of Sri Lanka.
Rohan Fernando, the Group Chairman, commented, “Our performance in the first nine months is strong evidence of SLT Group’s ability to navigate during uncertain times. This performance is a testament to the vital role that our products play in our customers’ lives. Our goal is to make the SLT Group the number one in the telecommunication and digital market. In order to realize that goal we explore new local and international markets, join hands with new funding partners and utilize/ monetize the underutilized assets within the Group. We need to build and improve positive attitudes in the mindsets of our customers, employees and all other stakeholders to accomplish better than yesterday. The progress we have achieved in the first nine months will help us to gradually reduce the accumulated borrowing incurred on developing the National Fiberization program. This initiative which began in 2017 has placed the company on a strong platform to move further in the Digital world”.
Lalith Seneviratne, the Group Chief Executive Officer, remarked, “As a Group with widespread operations across the country in both fixed and mobile operating services, resourced with expertized human capital and physical capital, we strive to leverage the synergies within the Group and thereby to improve efficiency and lower the operational expenses. We have already made several initiatives on the same and we will continue to reap the benefits of Group collaborations over the years to come”.
Mr. Kiththi Perera, Chief Executive Officer of SLT stated, “SLT proudly launched ‘SLTGO’ the community WiFi network recently, in partnership with FON Wireless Limited, the world’s largest community WiFi network operator. This solution provides an opportunity to SLT customers to access internet anywhere from SLTGO WiFi hotspots in Sri Lanka and from 23 million WiFi hotspots all over the world. In addition, as a responsible corporate citizen, SLT is involved in many CSR activities including the ‘e-waste’ collection week in partnership with the Central Environmental Authority and the Department of Posts, and joined hands with Mobitel to transform discarded buses into libraries. We always believe delivering value to our customers, communities and all other stakeholders is the most promising way to build long term value”.
Mr. Priyantha Fernandez, Chief Operating Officer of SLT added, “We have successfully commenced the Phase 3 of accelerated Fiber Expansion Program to provide FTTH (Fiber-to-the-Home) connections across the country to provide an ultra-speed experience to our valued customers. We extended PEO TV GO services to our 4G LTE customers too to enjoy their favourite TV programs. I’m pleased to announce that our cloud based ‘SLT Storage’ facility reached one million files recently. Further, as the digital lifestyle partner of the country SLT entered into the mobile gaming arena with ‘SLT Kimaki’ in partnership with Arimac Lanka (Pvt) Ltd”.
Sri Lanka’s decision to invest Rs. 2.5 billion in restoring the heavily polluted Beira Lake marks one of the most significant urban environmental interventions in recent years, underscoring a growing recognition that ecological rehabilitation is also an economic imperative.
The multi-pronged project—covering the closure of illegal sewage discharge points, large-scale dredging, and the installation of aeration systems—is expected to not only revive aquatic life but also unlock commercial, tourism and real estate value in the heart of Colombo.
Officials say the initiative is designed to transform Beira Lake from a long-neglected liability into a productive urban asset.
A senior official from the Ministry of Environment told The Island Financial Review that untreated wastewater and illegal sewer connections had been the primary contributors to the lake’s degradation for decades. “Closing these illegal sewage points is the most critical intervention. Without that, any dredging or aeration would only offer temporary relief, the official said, adding that enforcement will be carried out in coordination with the Colombo Municipal Council (CMC) and other regulatory agencies.
From a business perspective, the clean-up is being viewed as a catalyst for urban regeneration. Urban Development Authority (UDA) sources noted that a healthier Beira Lake would significantly enhance the attractiveness of surrounding commercial developments, hospitality projects and public spaces. “Environmental remediation directly impacts land values and investor confidence. A clean, living lake changes the entire economic profile of the area, an UDA official said.
The dredging component of the project is aimed at removing decades of accumulated sludge, which has reduced water depth and contributed to foul odours and fish die-offs. According to officials involved in project planning, the dredged material will be disposed of following environmental guidelines to avoid secondary pollution risks—an issue that has undermined similar efforts in the past.
Meanwhile, the installation of modern aerators is expected to improve dissolved oxygen levels, a key requirement for sustaining fish and other aquatic organisms. “Restoring aquatic life is not just about biodiversity; it is about creating a water body that can safely support recreational activities and public engagement, a senior CMC engineer explained.
Economists point out that the Rs. 2.5 billion allocation, while substantial, should be seen against the long-term cost savings and revenue potential. Reduced public health risks, lower water treatment costs downstream, increased tourism activity and higher commercial footfall could deliver returns that far exceed the initial outlay.
By Ifham Nizam
CSE activities kicked off on a negative note initially but later experienced some recovery yesterday because most investors were anticipating positive third quarter result shortly, market analysts said.
Amid those developments, the market indicated mixed reactions. The All Share Price Index went down by 4.13 points, while the S and P SL20 rose by 14.02 points. Turnover stood at Rs 5.17 billion with 11 crossings.
Top seven crossings were reported in Renuka Holdings where eight million shares crossed to the tune of Rs 324 million; its shares traded at Rs 40.50, Tokyo Cement one million shares crossed to the tune of Rs 113 million; its shares traded at Rs 113, Distilleries 1.85 million shares crossed for Rs 111 million; its shares traded at Rs 60, ACL Cables 500,000 shares crossed for Rs 51.5 million, its shares sold at Rs 103 Chevron Lubricants 250,000 shares crossed for Rs 47.5 million; its shares traded at Rs 190, Ambeon Capital 738600 shares crossed at Rs 40.50 each and Melstacope 150,000 shares crossed for Rs 27 million; its shares traded at Rs 180.
In the retail market top seven companies that mainly contributed to the turnover were; Colombo Dockyard Rs 1.26 billion (12 million shares traded), ACL Cables Rs 348 million (3.3 million shares traded), HNB (Non-Voting) Rs 152 million (425,000 shares traded), Hayleys Rs 109 million (507,000 shares traded), Tokyo Cement (Non-Voting) Rs 94 million (989,000 shares traded) Lanka Realty Investments Rs 80 million (1.6 million shares traded) and Sampath Bank Rs 77 million (498,000 shares traded). During the day 135 million share volumes changed hands in 38398 transactions.
It is said that manufacturing sector counters, especially Tokyo Cement and ACL Cables, performed well. Further, Colombo Dockyard became the most preferred share for investors. The Banking sector also performed well.
Browns Beach Hotels said that the company will delist from the CSE, having made arrangements with majority shareholders Melstacope and Aitken Spence Hotel Holdings to buy back shares from minority shareholders at an exit offer price of Rs 30.
Yesterday the rupee was quoted at Rs 309.75/85 to the US dollar in the spot market, from Rs 309.72/77 the previous day, having depreciated in recent weeks, dealers said, while bond yields were down.
A bond maturing on 15.05.2026 was quoted at 8.25/35 percent.
A bond maturing on 15.02.2028 was quoted at 9.00/10 percent, down from 9.05/10 percent.
A bond maturing on 15.12.2029 was quoted at 9.65/70 percent, up from 9.65/69 percent.
A bond maturing on 01.03.2030 was quoted at 9.72/75 percent, from 9.70/76 percent.
A bond maturing on 15.03.2031 was quoted at 9.95/10.00 percent, down from 10.00/10 percent.
A bond maturing on 01.10.2032 was quoted at 10.30/50 percent.
A bond maturing on 01.06.2033 was quoted at 10.72/75 percent, down from 10.70/80 percent.
A bond maturing on 15.06.2035 closed at 11.05/10 percent, down from 11.07/11 percent.
The telegraphic transfer rates for the American dollar were 306.2500 buying, 313.2500 selling; the British pound was 409.9898 buying, and 421.3080 selling, and the euro was 354.1773 buying, 365.5655 selling.
By Hiran H Senewiratne
Ceylon Theatres Limited, in partnership with British Council, is proud to present the first ever screening of National Theatre (NT) Live’s Hamlet starring Hiran Abeysekara in Asia. The first screening will happen at Regal Cinema in Dematagoda (Colombo 9) at 5:30 pm on Sunday, 25 January. Sri Lankan actor Hiran Abeysekera stars in the title role—the first Asian actor to play Hamlet in a National Theatre production.
For Sri Lankan audiences, this screening is both a celebration and a homecoming. It reflects the British Council’s long-standing commitment to nurturing creative talent, widening access to world-class culture, and building deep, people-to-people connections between Sri Lanka and the United Kingdom through theatre and the creative arts. To celebrate the inaugural screening, the British Council is inviting winners and runners-up of the All-Island Inter-School Shakespeare Drama Competition, alongside drama teachers and university actors, to attend the premiere.
Further details on screening dates, venues, and ticketing can be found at: https://ceylontheatres.com/ and on the British Council Instagram page https://www.instagram.com/britishcouncilsrilanka/ or call: 0766192370
Power sector reforms: CEB trade unions threaten strike
Dumbara Prison being expanded to accommodate nearly 30,000
Two Lankans involved in fisticuffs at Maldivian Airport remanded
WB forecasts slowed economic growth in Sri Lanka for two years
Lankans with nursing qualifications eligible for home-based jobs in Israel
The middle-class money trap: Why looking rich keeps Sri Lankans poor
‘Dates have the highest sugar content to fight Coronavirus’
Sunday Island 27 December – Headlines
#SundayIsland 17th December – Headlines
Sunday Island – 28th March
Sunday Island Headlines – 21 March
Sunday Island – 21st February – Headlines
-
Editorial3 days agoIllusory rule of law
-
News4 days agoUNDP’s assessment confirms widespread economic fallout from Cyclone Ditwah
-
Business6 days agoKoaloo.Fi and Stredge forge strategic partnership to offer businesses sustainable supply chain solutions
-
Editorial4 days agoCrime and cops
-
Features3 days agoDaydreams on a winter’s day
-
Editorial5 days agoThe Chakka Clash
-
Features3 days agoSurprise move of both the Minister and myself from Agriculture to Education
-
Features2 days agoExtended mind thesis:A Buddhist perspective