SLT’s operating profit up by 42 % in 1H 2019
View(s):The SLT Group last week announced its financial results for the first half of 2019 with a sharp growth of 42 per cent YoY in operating profit to reach Rs. 4.5 billion.
The growth momentum was driven by better management of costs and increase of revenue by 7.9 per cent YoY to Rs. 42.6 billion with significant contributions from its key business portfolios of fixed and mobile broadband services. The group comprises of nine subsidiaries including its mobile arm Mobitel (Pvt) Ltd. Gross Profit reached Rs.18.8 billion with a YoY growth of 13 per cent, the company said in a media release.
Despite the strong competition in the market and pressure on the country’s economy and public security during the first half of 2019, a strong EBITDA margin was recorded at 33.4 per cent in comparison to 30.9 per cent the year before. The EBITDA was reported at Rs.14.2 billion. Profit After Tax (PAT) rose to Rs.3.5 billion with a YoY growth of 23 per cent. The group was able to reduce foreign exchange losses to Rs.15 million from Rs.550 million in the first half of 2018 as a result of rupee stabilization, effective hedging strategies and reduction of foreign currency denominated loans which positively contributed to the PAT growth. The PAT margin grew to 8.2 per cent for the period under review from 7.2 per cent during the corresponding period in 2018. The group paid a total of Rs.13.9 billion in direct and indirect taxes and other contributions to the Government of Sri Lanka during the six months ended June 30, 2019, the release said.
Group Chairman Kumarasinghe Sirisena said: “I’m proud of my management team and my staff for working as one close unit to face the challenges with commitment and determination. The group with its nine subsidiaries continues its transformational journey to become the nation’s preferred digital lifestyle provider. SLT also inaugurated the ‘National Digital Roadmap (NDR)’ for a SMART Sri Lanka and the ‘Limitless You’ programme to uplift and enrich our valuable stakeholders who are vital for our journey. I strongly believe 2019 and the years ahead will be very encouraging in with us pursuing opportunities for positive growth.”
Operating profit of the holding company almost doubled to Rs.2.3 billion during the period under review helped by a 6.8 per cent YoY growth in revenues to Rs.24.9 billion and the efficient management of operating costs at Rs.22.6 billion with a minimum escalation of 0.24 per cent YoY.
“We intend to reach everyone in the country at least through one of our services and join hands with the government of Sri Lanka to uplift the lifestyles of our customers using various means of digital services. SLT has already planned to invest aggressively in fibre and digital infrastructure, paving the way to provide access to all citizens while inviting everyone to reap the benefits of the investments,” said Kiththi Perera, CEO of the holding company.
Mobitel revenue for the first half of 2019 stood at Rs.19.8 billion, up by 5 per cent compared to the corresponding period in 2018. Backed by the growth in revenue which is an increase of close to Rs.1 billion compared to the first half of 2018, Mobitel was able to record a growth in profits.