SLT rides on pandemic-induced remote working and learning as 3Q profits surge

From left: Rohan Fernando – Group Chairman SLT, Lalith Seneviratne – GCEO SLT, Kiththi Perera – CEO SLT and Chandika Vitharena – CEO Mobitel

Sri Lanka Telecom PLC reported stellar top and bottom line performance for the three months to September (3Q21) as the telecommunications services juggernaut was riding on the wave of demand for data and other digital services set off by the pandemic induced lockdowns and other restrictions.  

The group reported revenues of Rs.26.65 billion for the period under review, up 15.5 percent from the same period last year and the earnings surged 49.2 percent to Rs.3.23 billion or Rs.1.79 a share.

For the nine months ended September 30, 2021, the company reported earnings of Rs.5.09 a share or Rs.9.18 billion compared Rs.3.74 a share or Rs.6.75 billion in the year earlier period. 

“With the shift towards work from home arrangements and study from home arrangements, the group experienced a positive impact in revenue in areas such as broadband, IPTV and career business services due to surge in utilisation in both residential and business sectors,” SLT said in a statement. 

During the nine months, the group spent Rs.18.2 billion as capital expenditure on the ongoing accelerated fibre expansion project under the national fiberisation programme and on the new LTE base stations and towers. 
The groundwork is also being laid for the upcoming 5G-technology rollout as the group is getting future ready. 
The group’s fixed telephone and other digital services business generated revenues rose by 17.5 percent to Rs.40.9 billion in the nine months while the mobile operations under Mobitel (Pvt) Limited generated revenues of Rs.34.1 billion, up 10.4 percent. 

The group last year launched its unified corporate brand, ‘SLT-Mobitel’ which perhaps would have aided to cut down on sales and marketing in the quarter.  

The group however said the depreciation in the rupee against the United States dollar adversely affected its cash flows. 

In the three months to September, the group’s foreign exchange gains of Rs.117 million turned into a loss of Rs.5.0 million. 

By September 30, 2021 the National Treasury on behalf of the Sri Lankan government directly held 49.50 percent stake in SLT while Global Telecommunications Holdings NV, the wholly owned subsidiary of Malaysian investment holding company, Usaha Tegas Sdn Bhd held 44.98 percent stake. 

Employees’ Provident Fund held another 1.40 percent stake being the third largest shareholder of SLT.