SLT Group closes FY21 on high note amid pandemic-driven demand

• Group topline surpasses Rs.100bn in FY21; records Rs.12.2bn PAT
• 4Q revenue at Rs.25.7bn; PAT surges to Rs.3bn
• Group CEO says divesting of non-core businesses brought in good results
• Mobitel records highest profits in 28-year history with Rs.8.0bn PAT 

Sri Lanka Telecom PLC (SLT) Group concluded the financial year 2021 on a high note, recording a turnover of Rs.102.3 billion for the year ended December 31, 2021 marking a topline growth of 12.3 percent year-on-year.
The Group’s sustained growth resulted in a profit after tax (PAT) of Rs. 12.2 billion, a growth of 54.3 percent as compared to the previous year. The Group profits were propelled forward by robust performances by multiple business segments. The EBITDA of the Group grew at 16.6 percent during the period on the backdrop of operating profit growth of 19.0 percent. SLT’s sustained investment on expanding fiber connectivity (FTTH) and significant expansions and upgrades in the 4G/LTE network resulted in the surge in Broadband revenue during the year. 

Further, SLT experienced a revenue growth in PEO TV in a market receptive to quality education and entertainment options online, expanding to hitherto untapped markets during the year under review.
Xyntac, the Global unit of SLT-Mobitel adds strength to the overall business, with the investment in the new SEA-ME-WE 6 cable, set to elevate Sri Lanka’s global connectivity capacity to the next level.The state-of-the-art data center that bolsters the digital capabilities of SLT-Mobitel, and the Akaza multi-cloud platform too continue to add value to the company.

SLT Group Chairman, Rohan Fernando stated, “Looking back on 2021, I can proudly say that we have achieved way beyond what we expected and closed the year with an all-time best record in every aspect may it be financial, corporate governance or above all else national responsibility.”

The Group revenue for the 4Q21 grew by 7.5 percent compared to the same quarter of the previous year to Rs. 25.7 billion, with the EBITDA and operating profit growing by 21.3 percent and 34.8 percent respectively. The Group profit after tax (PAT) for the quarter climbed to Rs.3.0 billion, a 162.9 percent year-on-year growth. 

“The past year was one of discovery and resilience, and one we were all fully invested in. Our growth in all areas is a testament to it. The SLT-Mobitel brand unification propelled the Group forward, enticing customers to embrace the National Service Provider and to trust in us to provide uninterrupted connectivity despite the challenges we faced as a country.

The divesting of our non-core businesses has brought in good results and will now allow us single minded focus on our core businesses, allowing us to propel SLT Group’s to the pinnacle of digital leadership,” remarked SLT Group Chief Executive Officer Lalith Seneviratne. The holding company of the Group, Sri Lanka Telecom PLC (SLT) recorded an impressive 16.0 percent increase in revenue over the last year reaching Rs. 59.8 billion. The PAT of the company went up to Rs. 5.9 billion, reflecting a 45.9 percent year-on-year growth. The company saw a heightened growth in revenues from broadband, PEOTV and carrier domestic services during the year compared to the year before. 

Mobitel (Pvt.) Ltd., the mobile arm of the group recorded its highest profits in its 28-year history with a PAT of Rs.8.0 billion, marking a growth of 63.8 percent in PAT year-on-year. The growth was mainly driven by the broadband segment. Despite the adverse macroeconomic conditions and other challenges, Mobitel recorded a revenue of Rs. 47.1billion, a noteworthy 8.7 percent year-on-year growth compared to the previous year. 
Mobitel’s post-paid voice revenue and international incoming voice revenue too reported a considerable growth during the same period. EBITDA increased by 17.7 percent to Rs. 19.5 billion, reflecting the growth in revenue and operational efficiencies.

SLT managed to lower its group level borrowings during the year under review. Further, the Group’s operating cash flows displayed a continuous improvement with a 22.8 percent increase compared to the previous year.

 The group stated that despite forex challenges in the country, the devaluation exposure to the Group was low, with SLT making gains on exchangedue to prudent forex management. 

The Group paid a total amount of Rs.19.3billion as direct and indirect taxes including levies, and dividends to the Government of Sri Lanka during the financial year 2021.

Looking forward to the year ahead the Group is confident there will not be any decline in consumption even in a return to ‘normalcy’.