SLT records resilient June performance amid prudent foreign exchange strategies

The Sri Lanka Telecom group posted a stable growth for the first half of 2022, with revenues increasing by 6 percent to Rs.52.9 billion and a 19.8 percent increase in profit before tax at Rs.7.2 billion against the same period last year, showcasing resilience in its business model amidst complex socio-economic challenges facing the country.

Demonstrating operational efficiency, the SLT group’s earnings before interest, tax, depreciation and amortisation (EBITDA) went up to Rs.20.9 billion for the first half of 2022, recording a growth of 7.8 percent compared to the corresponding period of the previous year. The EBITDA margin stood at 39.7 percent for the period under review.
Building on the success of the previous quarter, the SLT group was able to maintain a positive momentum for 2Q22, recording gains of 4 percent in operating profit when compared to the previous quarter. The group recorded a foreign exchange gain of Rs.135 million during the quarter, due to the prudent foreign exchange strategies.  
However, profit after tax declined by 26.5 percent in 2Q22 compared to the previous quarter, mainly owing to the increase in income tax expenses during the period. 

During the period from April to June, the group faced several business growth challenges, including an unprecedented economic crisis, import restrictions, inflationary pressures, etc. As a result, the ongoing investments were affected; the new projects were also impacted, due to the increase of operational costs and the energy and fuel crisis resulted in operational challenges. 

The operating cash flows of the group grew to Rs.23.5 billion, up by 21.2 percent year-on-year. The group recorded a favourable cash and cash equivalents position of Rs.27 billion as at the end of the reporting period. 
The SLT group’s contribution to the Government of Sri Lanka during the first half of 2022 amounted to Rs.14 billion in direct and indirect taxes, including the levies and dividends.  

The holding company of the group, Sri Lanka Telecom PLC (SLT), recorded an impressive 12.4 percent revenue growth for the first of half 2022, compared to the same period of the previous year. The EBITDA of the company grew to Rs.11.8 billion, up by 10.2 percent year-on-year.

Despite the challenging macroeconomic conditions, Mobitel recorded Rs.0.7 billion profit for 2Q. Looking ahead, Mobitel aims to increase its growth in international business revenues, enhance productivity and efficiency in all areas, including power and energy.