Connect with us

Business

SLT Group FY and 4Q 2023 results impacted by macro-economic issues

Published

on

Janaka Abeysinghe

Optimistic on future SLT-MOBITEL forecasts

The SLT Group’s financial results for the fourth quarter and financial year ending December 31, 2023, reflect a downturn in performance amidst a turbulent macro-economic environment in the country.

For 4Q 2023, SLT Group reported a year-on-year consolidated revenue degrowth of 7.5% amounting to LKR 26 billion compared to LKR 28 billion in 2022. The Group’s profits decline was attributed to reduced revenue, despite the efforts of cost optimization measures that resulted in a 5.9% reduction in Operating Expenses (Opex). Consequently, the Group saw a corresponding decline in operating profit, with both Profit Before Tax (PBT) and Profit After Tax (PAT) experiencing decreases in the quarter.

At SLT level, a 3.6% Opex reduction was posted for 4Q 2023 compared to 4Q 2022, attributed mainly to a well-managed cost reduction in staff costs. Further, SLT saw cost savings in other areas credited due to a reduction in advertising and activation costs, with repair and maintenance costs also decreasing during the latter part of 2023. However, these savings were outweighed by a fall in the top line and increase in depreciation, driving overall losses.

Overall, in the financial year of 2023, the Group’s operational costs rose by 9.4% to LKR 74 billion compared to LKR 68 billion in 2022, mainly due to increased electricity tariffs. Additionally, other costs, including, annual maintenance contract costs, vehicle hiring, fuel, and repair costs, contributed to the overall cost increase year-on-year.

Furthermore, over the twelve-month period of 2023, the Group experienced a loss of LKR 3.9 billion, contrasting sharply with the profit of LKR 4.8 billion recorded in 2022, reflecting a staggering decline of 182.3%. Similarly, SLT and Mobitel individually reported losses of LKR 1.1 billion and LKR 3.6 billion for the year, respectively. Additionally, the Group’s revenue experienced a marginal degrowth of 1.2%, amounting to LKR 106.4 billion, compared to the revenue of LKR 107.7 billion in the financial year of 2022.

Offering a positive trend compared to 3Q 2023, the Group recorded a 13.2% reduction in Opex from 3Q to 4Q and a decrease in net losses from LKR 1.5 billion in 3Q to LKR 1.2 billion in 4Q. Moreover, the Group recorded an operating profit of LKR 549 million in 3Q 2023, followed by a surge to LKR 1.2 billion in 4Q 2023, indicating optimistic future forecasts.

Despite the performance decline over previous year, Mobitel showed a 3% growth in revenue and improvement in profitability parameters in the second half of 2023 over the first half of the year. The EBITDA reported a 9% growth and operating loss have reduced by 54% during the period as a result of company’s top line growth and cost optimization efforts.

Janaka Abeysinghe, CEO, SLT-MOBITEL noted, “Looking ahead, macro-economic uncertainty persists. Despite the year-on-year decline in profitability, we are optimistic and see encouraging signs for 2024. Our cost base is under continuous review and adjusted to match market conditions. Given these fundamental strengths, we believe we will overcome negatives in these challenging markets and are confident in driving the long-term profitability of the Group”.

The Group remains committed to financial prudence and business continuity while hoping for improved economic forecasts ahead.



Business

SL High Commission in London hosts business promotion dialogue

Published

on

Sujeeva Nivunhella reporting from London

In a bid to support Sri Lankan small and medium-sized enterprise (SME) entrepreneurs in the UK, the High Commission of Sri Lanka in London, in collaboration with NLC Consultants-UK, hosted the inaugural Sri Lanka Business Promotion Dialogue recently.

The event, designed to assist startup businesses led by Lankan entrepreneurs, aimed to foster business growth, enhance international market access for Sri Lankan-origin products in the UK, and expand employment opportunities for Lankans living in Britain.

Delivering the opening remarks at the dialogue, Minister (Commercial) of the High Commission Somasena Mahadiulwewa emphasized the significance of the event series. He underscored the initiative’s long-term goal of establishing a dedicated SME Entrepreneurs’ Hub at the High Commission, in line with the vision of the new Sri Lankan government and guidance from the country’s Foreign Affairs and other relevant ministries.

As part of the event’s knowledge-sharing sessions, Ranganath Abeykoonge, a Chartered Accountant and Managing Director of Sonic Builders in London, shared insights on his journey to business success. Drawing from his experiences, including working at major UK companies like TK Maxx, Abeykoonge encouraged young Lankan entrepreneurs to capitalize on business opportunities in the UK while also creating jobs for their fellow nationals.

Thilak Dharmarathne, a past member of the Sri Lanka AAT Council and Director of NLC Consultants-UK, delivered an address highlighting strategies for business growth and market penetration.

A panel discussion, chaired by Mahadiulwewa, addressed key concerns faced by Lankan business owners in the UK. Panellists included Nayana Kularathne, a Chartered Accountant, who provided guidance on tax and accounting matters; Heshan Mathugamage, a Sri Lankan lawyer and Director of NLC Consultants-UK, who addressed company startup queries; Mohamed Sameen, a UK solicitor, who covered legal business processes; and Kosala Perera, an HR consultant, who discussed employment policies in the UK.

Mahadiulwewa also shared details of the UK’s Developing Countries Trading Scheme (DCTS), a duty-free opportunity announced by UK authorities in June 2023, which Sri Lankan exporters can leverage to access the UK market. Additionally, he outlined regulations concerning product labeling, food, and other product standards, offering valuable insights to aspiring exporters.

During the Q&A session, Mahadiulwewa presented a list of existing and potential export items from Sri Lanka to the UK, along with investment and tourism opportunities available in Sri Lanka.

The interactive event saw participation from 30 Lankan entrepreneurs, with discussions conducted in Sinhala, Tamil, and English. The next Sri Lanka Business Promotion Dialogue is scheduled to take place in Manchester in April 2025, promising to extend support to more Lankan entrepreneurs across the UK.

Continue Reading

Business

Platform Daddy wins Best Strategic Digital Marketing Brand of the Year Award

Published

on

D. M. Nirmal Danansooriya (CEO) receiving the award

Platform Daddy Pvt. Ltd has been awarded as the Best Strategic Digital Marketing Brand of the Year at the Pinnacle Sri Lanka Awards 2024. The award ceremony was held at Taj Samudra Hotel in Colombo, and company’s Chief Executive Officer, Nirmal Danansooriya received the award from former Speaker of Parliament, Sri Lankabhimanya, Karu Jayasuriya.

Beyond business, Platform Daddy remains committed to social impact. The Platform Buddy Foundation provides care, shelter, and medical support for street dogs, while the Platform Tree Foundation focuses on urban greening and environmental sustainability, with 5% of company earnings dedicated to these causes. The company has previously been honoured at several local and international award ceremonies such as the Asia Miracle Awards, the Iconic Awards, and the People’s Excellency Awards, said a release.

Continue Reading

Business

Tourism Malaysia launches sales mission to strengthen ties with Lankan market

Published

on

Tourism Malaysia is excited to announce the launch of its Sales Mission in Colombo, aimed at revitalizing its presence and strengthening its relationship with the Sri Lankan tourism market. This initiative follows a remarkable 122% increase in Sri Lankan tourists to Malaysia, with 58,015 visitors in 2024 compared to just 26,058 in 2019, prior to the pandemic.

The mission emphasizes Malaysia’s potential as a key travel destination for Sri Lankans, highlighted by 30 weekly flights from Colombo, offering a seat capacity of 4,990. Hishamuddin Mustafa, Director of Tourism Malaysia Chennai (South India & Sri Lanka), stated, “We are here to reconnect with local industry players, express our gratitude for their support, and explore new opportunities for collaboration. The participation of 45 Malaysian sellers in this mission further demonstrates our commitment to strengthening Malaysia’s presence in the Sri Lankan market.”

With Visit Malaysia Year 2026 on the horizon, the goal is to attract 100,000 Sri Lankan travelers.

Continue Reading

Trending