SLT Group Net Profit up 35%, Revenue Recorded at Rs. 67.2bn: First 09 Months of 2020
Sri Lanka Telecom PLC (SLT) Group released its financial results for the first nine months of 2020 recording a remarkable 35.4% YoY growth in its Net Profit to Rs. 6.7 billion. The Group revenue reported at Rs. 67.2 billion, a 5.2% YoY growth, assuring a resilient performance amidst the Covid-19 pandemic.
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 the last year, pushing the EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) margin up to 39.3% from 34.9%. The EBITDA lifted to Rs. 26.4 billion, up by 18.4% YoY. The Depreciation and Amortization of the Group increased by 9.8% YoY to Rs. 16.7 billion. The Group recorded an impressive growth in Operating Profits of 37.0% YoY to Rs. 9.7 billion due mainly to the elevated EBITDA of the period.
The Interest Expenses and Finance Costs rose to Rs. 2.1 billion from Rs. 1.4 billion 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 billion from Rs. 58 million in the same period last year stemming from the depreciation of 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 billion, a 18.9% growth compared to the year before while Profit After Tax (PAT) posted at Rs. 6.7 billion, 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 billion as Direct and Indirect Taxes and Levies to the Government of Sri Lanka.