14 November 2024 01:17 am Views - 273
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CEO Janaka Abeysinghe
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The SLT-Mobitel group has reported a profit after tax (PAT) of Rs.1,093 million for 3Q 2024, compared to a loss of Rs.1,543 million for the same period last year, demonstrating a significant 171 percent turnaround in bottom line performance.
At company level, Sri Lanka Telecom PLC (SLT) also recorded a positive PAT of Rs.932 million for 3Q 2024, compared to a Rs.651 million loss last year, indicating a successful transition from loss to profit.
The group has announced consolidated revenues for the quarter at Rs.28.5 billion, a 3 percent increase, up from Rs.27.7 billion in the previous year. Gross profit showed a marked increase at Rs.12.3 billion, with a 24.8 percent increase, compared to Rs.9.9 billion. The rise has been driven primarily by cost savings achieved through successful cost-saving initiatives implemented across the group.
The group’s EBITDA showed strong growth, reaching Rs.10.5 billion during 3Q 2024, an increase of 30.6 percent, compared to Rs.8 billion in the previous year. In addition, operating profit showed a marked increase at Rs.3.6 billion, a massive 551 percent growth, compared to Rs.549 million last year.
On the cost side, the group achieved significant reductions across multiple areas as at 3Q 2024. Notable savings were realised in annual maintenance costs (AMC) and repair expenses, contributing to a substantial year-on-year cost reduction. Costs for the quarter (excluding depreciation and amortisation) was Rs.18 billion, an 8.3 percent reduction, from Rs.19.7 billion in the previous year. Additionally, the finance costs decreased by 18.1 percent, further supporting the positive financial performance.
At company level, SLT achieved a revenue of Rs.18 billion for the third quarter of the year, an increase of Rs.603 million, representing a 3.4 percent growth, compared to Rs.17.5 billion last year. Gross profit also showed a robust increase of Rs.1.6 billion, with a 22.8 percent growth compared to 3Q 2023. In addition, the company successfully managed the operating expenses, achieving a reduction of Rs.638 million, down 5.4 percent from last year, contributed through a combination of reduced AMCs, repairs and vehicle hiring expenses.
The EBITDA growth of Rs.1.2 billion, a 21.8 percent increase, indicated improved operational efficiency of the company. The operating profit surged to Rs.2.5 billion, signalling an impressive 299 percent growth compared to 3Q 2023. The company successfully reduced its finance costs by 28.2 percent, improving the bottom line for the quarter.
Most notably, the company has achieved a remarkable turnaround in PAT, improving 243 percent, an increase of Rs.1.6 billion compared to 3Q 2023, demonstrating effective financial management and successful implementation of growth strategies.
Mobitel showed significant improvements during 3Q 2024, across the key metrics compared to the previous year. The revenue increased by 7.9 percent to Rs.11.7 billion, driven primarily by the broadband growth, while the EBITDA rose by 40 percent to Rs.3.6 billion, reflecting strong operational efficiency. Notably, Mobitel achieved a positive operating profit of Rs.898 million, a substantial turnaround from the previous losses and a net profit improvement of 102 percent, indicating a successful recovery and effective cost management strategies.
The group has returned to profitability across business units SLT and Mobitel in 3Q 2024, demonstrating the effectiveness of its cost optimisation strategy while maintaining service quality. The group remains committed to strategic investments and continued operational efficiency, looking towards a brighter 4Q.