SLT Group revenue recorded at Rs. 24.7 bn in Q1 2021, net profit improved by 14%
From left: Rohan Fernando- Group Chairman-SLT, Lalith Seneviratne- Group CEO-SLT, Kiththi Perera- CEO-SLT and Chandika Vitharena- Acting CEO-Mobitel
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, 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, 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, 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, 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.”
SL needs laser-like focus on IMF programme implementation: Dr. Indrajit Coomaraswamy
‘If it gets suspended, it would have pretty dramatic consequences’
by Sanath Nanayakkare
There are three most important priorities for Sri Lanka in the wake of the IMF Programme; implementation, implementation and implementation of the agreed upon benchmarks of the programme. Last thing we need to suddenly find is that we have gone off the track of the programme and it is suspended, Dr. Indrajit Coomaraswamy, Former Governor, Central Bank of Sri Lanka said on Friday.
He said so while giving the keynote speech at a Central Bank hosted webinar titled “What is next for Sri Lanka in the wake of IMF Programme?”
Deshal De Mel, Economic Advisor, Ministry of Finance, Murtaza Jafferjee, Managing Director, JB Securities, Bingumal Thewarathanthri, Chief Executive Officer, Standard Chartered Bank were the panelists at the forum where the moderator was Shiran Fernando, Chief Economist at the Ceylon Chamber of Commerce
The following are a few comments made by Dr.Coomaraswamy.
The IMF EFF has now been successfully negotiated. This is in some way the beginning. There is lot more to do. It’s time to start thinking about what happens next. A little under a year ago, there were acute shortages of the most essential good. There were long queues and one or two people passed away while in queue. Prices were skyrocketing and exchange rate was collapsing, inflation was spiking and the Central Bank had to push up interest rates. All this happened only a few months from where we are today. The fact that things have stabilized to a significant extent clearly is a very favourable outcome but actually there is no room for complacency because the stabilization has happened at a low-level equilibrium.
It has happened when the economy experienced a 7.6% contraction last year. It was better than what was anticipated by the IMF and the World Bank, but still it is a very sharp contraction. And we need to get to a situation where we have macro-economic stability with a growth rate of about 4%. There is a lot to be done for this. But this is a very commendable place to get to after all. The Paris Club comprising G7 countries has endorsed our efforts to restore debt sustainability. The non-Paris Club creditors such as India and China also have endorsed and supported our efforts too. So the largest countries and creditors are willing to support Sri Lanka to get back on track in terms of debt sustainability. So this is not a bad place to be.”
“IMF programme implementation has always been a weakness on our part. This time we have already done a lot as prior action but there is more as you would have seen from the documentation tabled in parliament including structural reforms and institutional reform. So we have to have laser-like focus on implementation and move forward with the programme. If the programme gets suspended, it would have pretty dramatic consequences. So we need to keep it on track. We can’t give up the absolutely compelling need for fiscal discipline. What is next for us is; discipline and making the needed economic policy and implementing what e have agreed to do. During our past IMF programmes, the issue was lack of implementation by the Sri Lankan authorities.
Earlier this week Dr. Chandranath Amarasekare, Executive Director at the CBSL arranged for the Irish authorities to brief Sri lankan authorities on the implementation unit set up in Ireland when the global financial crisis hit Ireland which led them to go into an IMF programme. Ireland was meticulous in the way they set up the implementation framework. They identified all the action that had to be taken and assigned parts of it to relevant government entities to implement them. Ireland is back on track now. We need to have the same degree of laser-like focus on implementing the benchmarks. We have to figure out what needs to be done and ascribe responsibility for each action and monitor
carefully how we are going about it. We have to make sue we are hitting all the targets and structural benchmarks as we go along. These are embedded in the IMF programme. Last thing we need is to suddenly find that we have gone off the track of the programme and the programme is suspended. That will constrain the inflows to the country and it will affect the confidence beginning to build up now. All that will get undermined if the programme gets suspended because we are not able to keep it on track. So the Implementation Unit will need a very good authority to reach out to any part of government and get things done. We need this Implementation Unit to be well-structured and running well. And it should have the authority of the President behind it,”he said.
Exterminators PLC opens a training and R&D center
Exterminators PLC, Sri Lanka’s premier pest tech and environmental tech company, opened a 5,000 plus square foot training, research and development center to enhance the quality of service via in-depth innovation to create a circular economy inorder to meet the growing demand in environmentally sustainable public health pest management, agricultural pest management, livestock, plantation and landscape pest management, sanitation and disinfection services in Sri Lanka and emerging and developing markets. The facility includes simulated environments for training in pest management, termite management, mosquito management, sanitation and disinfection, health and safety for new recruits and continuous professional training and development for existing employees.
The company plans to provide training for international pest management professionals in emerging and developing countries as well as serve as a training facility for its strategic franchising partners in the region.
SLT-MOBITEL ‘Hosting Cub’ for MSMEs enables critical infrastructure and value-added hosting services
Understanding the importance of supporting Micro, Small, And Medium-Sized Enterprises (MSMEs) to drive growth and efficiencies, SLT-MOBITEL, the National ICT Solutions Provider is offering its Hosting Cub – Shared Web Hosting service catering to vital hosting requirements.
SLT-MOBITEL provides hosting facilities for MSMEs with affordable pricing, easy expansion of MSMEs cyber presence and other value-added offerings via its Shared Hosting and Virtual Private Server (VPS) solutions.
The Shared Hosting proposal is offered as the most economical option available for hosting. The overall cost of server maintenance is shared, also catering to low traffic websites that do not require higher bandwidth such as smaller websites and blogs.
The Share Hosting solution is available via four levels – Stellar, Stellar Plus, Stellar Pro and Stellar Business. The ‘Stellar’ package 1 GB VSAN Disk Space to balance storage usage, monthly 20 GB Bandwidth, 2 Mbps speed, 10 websites allowed, secure connection through SSL, FTP Accounts to manage file transfers, Unlimited email accounts, Unlimited MySQL Database to manage data, Unlimited Sub Domains, Hosting in SLT’s state-of-the-art Data Centre and WordPress supported. The pack is priced at only Rs 7500 per annum.
Similarly, the Stellar Plus presents an enhanced package with 2 GB VSAN Disk Space, monthly 40 GB Bandwidth, approval of 15 websites in addition to all the other value-additions. It is priced at Rs 12,000 per year. The Stellar Pro delivers 3 GB VSAN Disk Space, monthly 100 GB Bandwidth and 30 websites allowed while the Stellar Business provides 5 GB VSAN Disk Space, monthly 150GB Bandwidth and 40 websites. All other features are also enabled. The costs for Stellar Pro and Stellar Business are Rs 16,500 and Rs 25,500 respectively, per annum.
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