Passes on benefit to consumers during tough pandemic period
SLT-MOBITEL, the National ICT, Telecommunications, and Mobile Services Provider, announced its financial results for the first half of 2021, posting a 29.9 percent yearon-year growth of Group Profit After Tax (PAT) of six billion rupees. Cost consolidation across verticals and a group-wide undertaking to minimize waste, convert waste to cash, and manage OPEX cost resulted in a healthy bottom-line.
SLT-MOBITEL ensured its customers benefited most during the challenging pandemic period, with improved service levels, upgraded infrastructure, and innovative product offers, the Group announced. SLT Group Revenue grew to 49.9 billion rupees in the period under review, a 13.3 percent increase against the comparable period in the previous year, driven by the focus on business continuity despite the Coronavirus pandemic. The EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) of the Group stood at 19.6 billion rupees, a 10 percent year-on-year growth. In comparison, the Operating Profit for the Group was 7.2 billion rupees reflecting a 4.2 percent growth over the first half of 2020.
The Group Revenue for Q2 2021 grew by 15.2 percent compared to the same quarter of the previous year to 25.3 billion, lifting the EBITDA and Operating Profit to 9.9 billion rupees and 3.8 billion rupees, respectively.
The Group Profit After Tax (PAT) for the quarter was reported at 3.8 billion rupees, a 40.7 percent yearon-year growth.
During the pandemic, topline growth can be attributed to the customer-focused delivery of essential products and services.
SLT-MOBITEL strived to provide residential Fiber connectivity and increase PEO TV and mobile services as customer demand grew. This strategy led to more customer acquisition, aided by value-added services, competitive pricing, and the launch of innovative consumercentric services such as unlimited data packages.
SLT Group continued its contribution to the Government of Sri Lanka during the first half of 2021, paying 10.3 billion rupees in direct and indirect taxes, including levies and dividends.
The Group has also committed to long-term infrastructure investments positively impacting the quality of digital connectivity in Sri Lanka. These include the investments in submarine cable networks, backbone infrastructure, and ongoing capital infusion on an extensive island-wide fiber-optic network, 4G towers, and base stations.
The SLT Group is perhaps a model to emulate other corporates and institutions managing the pandemic amongst staff and their immediate family members.
The Company created a fund to mitigate the cost of hospitalization and established six transit centers for first contacts to convalesce. The precautionary measures monitored weekly by a vigilant committee successfully contained the spread of the disease to a bare minimum.
Rohan Fernando, Group Chairman, SLT, stated, “SLTMOBITEL is the truly Sri Lankan Telecommunication Company, and we are fully committed to serving the Nation and its people. We are working closely with the Government of Sri Lanka on National ICT and Telecommunication programs to ensure all Sri Lankans are connected to bridge the Digital divide.”
“The growth for SLT-MOBITEL in the period under review has come as a direct result of our service quality. Our efforts to drive prices down and improve our customer service have been welcomed by residential customers who consume voice connectivity, mobile and fixed data, and PEO TV. Our enterprise and small business customers, who have counted on us for business continuity during the pandemic, have benefited from our customercentric solutions. Meanwhile, our brand unification as SLT-MOBITEL at the beginning of 2021 is already reaping synergy with decreased costs and magnified visibility, especially in a tough economic backdrop,” Lalith Seneviratne, Group Chief Executive Officer, SLT, remarked.
The holding company, Sri Lanka Telecom (SLT), posted a robust 42.2 percent year-on-year increase in PAT of 3.9 billion rupees for the first half of 2021, driven by a topline growth of 14.7 percent year-on-year to 29 rupees.
Mobitel, the Mobile services arm of the Group too posted significant growth in the period under discussion. During the first half of 2021, Mobitel achieved a doubledigit growth in revenue led by the growth in Broadband services.
The Company’s efficient operating and capital expenditure management led to achieving strong profitability with a 47.7 percent growth in PAT against the comparable period in the previous year.
Kiththi Perera, Chief Executive Officer, SLT commented, “SLT-MOBITEL is successfully progressing with the accelerated fiber expansion program to provide ultra-speed Fibre-to-the-Home (FTTH) connections across the country. Furthermore, the drive to expand and upgrade the present 4Gnetwork is accelerated.”
Chandika Vitharana, Chief Executive Officer, Mobitel, added, “As a responsible corporate citizen, SLT-MOBITEL has been active on many fronts in social responsibility projects. The Group joined hands with the ‘Gamata Sanniwedanaya’ and ‘Gama Samaga Pilisandara’ programs. It partnered with the TRCSL to extend connectivity in rural Sri Lanka by establishing base stations and 4G towers. SLTMOBITEL has taken steps to donate vital medical equipment as well as PCR machines to hospitals island wide under the Group’s CSR project ‘Sabandiyawe Sathkaraya.’”