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.”
Share investors worried over Wealth and Heritage tax
By Hiran H Senewiratne
CSE trading kicked off on a positive note yesterday but the momentum could not be sustained for long owing to investor worries that the government is planning domestic debt restructuring involving the imposition of a wealth and heritage tax on citizens, market sources said.
Amid those developments both indices moved downwards. The All -Share Price Index went down by 131 points and S and P SL-20 declined by 46.8 points. Turnover stood at Rs 3.4 billion with four crossings. Those crossings were reported in Agalawattte Plantations, which crossed 45.3 million shares to the tune of Rs 1.5 billion, its shares traded at Rs 35, CTC 420,000 shares crossed for Rs 269 million and its shares traded at Rs 640, Cargills 100,000 shares crossed to the tune of Rs 24.5 million; its shares traded at Rs 245 and Hayleys 300,000 shares crossed for Rs 24 million; its shares traded at Rs 80.
In the retail market top seven companies that mainly contributed to the turnover were, SLT Rs 234 million (two million shares traded), Hayleys RS 121 million (1.5 million shares traded), Lanka IOC Rs 106 million (115,000 shares traded), Softlogic Capital Rs 69 million (5.6 million shares traded), CTC Rs 65.3 million (101,000 shares traded), Sampath Bank RS 54.7 million (one million shares traded) and Commercial Bank RS 52.5 million (801,000 shares traded).During the day 164 million share volumes changed hands in 20000 transactions.
Brandix ‘RightToRead’ initiative gains momentum enriching Sri Lanka students and transforming learning
Inspired by the challenge to provide Sri Lankan children with better access to learning materials and the transformative power to read and comprehend English, Brandix launched the ‘RightToRead’ project in 2018 in collaboration with the Ministry of Education.
Accordingly, Brandix introduced the ‘ReadToMe’ English learning tool, created by English Helper – India, to improve reading and comprehension skills of Sri Lankan students. Last Monday, Julie Chung, the US Ambassador to Sri Lanka, visited Susamayawardhana Vidyalaya in Borella, to observe progress of the project and experience how children and educators in Sri Lanka engage with educational technology.
Brandix Lanka Limited, Director, Ajit Johnpillai, said: “Education is the most powerful tool to enrich communities and futures, and Brandix is committed to build a strong foundation for transformational learning for students across Sri Lanka. The progress we have made with RiteToRead over the past two years is promising, and the potential for change in the education sector harnessing such digital technologies is immeasurable. Brandix will continue its commitment to deliver Inspired Solutions for the people of Sri Lanka.”
Dialog TV Boosts Resilience and Capacity with Norsat Satellite Earth Station
Hytera, a leading global provider of professional communications technologies and solutions, is proud to announce the successful deployment of a new backup satellite station for Dialog TV, Sri Lanka’s No.1 satellite Pay TV service provider. The project was fulfilled in 2022 by Hytera and its subsidiary specialized in Satellite Communications (SatCom), Norsat International Inc. The new station enhances the resilience and capacity of Dialog TV’s existing system and ensures continuity of service in the event of damage due to natural disasters.
Dialog TV provides coverage over the entirety of Sri Lanka through the Intelsat 38 Ku-band satellite. As the business expanded, it opted for a backup solution to support its existing satellite station and to strengthen the network’s disaster tolerance.
Hytera and Norsat provided an end-to-end satellite earth station solution that includes the installation, integration, and setup of satellite antennas, a transmission and receiving system, a new network management system (NMS), and a carrier monitoring system (CMS). The NMS makes routine work easier and simpler for on-duty staff, as equipment status, parameter monitoring and configuration, and remote control of the devices can be viewed and accomplished via a single interface. The CMS monitors the carrier spectrum status of satellite signals in real-time and ensures stable signal transmission and receiving.
“We are excited to have been able to work with Dialog TV on this important project,” said Kevin Sun, Sales Director for Hytera South Asia, “Our ability to seamlessly integrate our new equipment and software with Dialog TV’s existing systems has helped to ensure a stable and reliable service for their millions of customers across Sri Lanka.”
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