SLT-MOBITEL reports marginal growth in Q1 2024
View(s):SLT-MOBITEL has reported flat growth in Q1 2024 ending March 31, 2024, amidst a challenging business environment. However, the company’s proactive cost management initiatives have resulted in significant operational cost savings, enabling it to maintain profitability, the company said in a media release on Friday.
For the last quarter, the SLT Group has recorded consolidated revenue of Rs.26.93 billion, reflecting a marginal 1.4 per cent year-on-year increase.
However, compared to the fourth quarter of the previous year, i.e., Q4 2023, there was a modest increase of 3.7 per cent in revenue, driven by enterprise and broadband revenues.
The company has successfully implemented cost-saving measures, resulting in a decrease of 0.6 per cent in operational expenditure (excluding depreciation and amortization) compared to Q1 2023. This was partly due to the decrease in dollar-denominated expenses such as Annual Maintenance Cost (AMC), international settlement, and Internet backbone charges due to the rupee appreciation.
“The first quarter of 2024 presented a volatile business landscape, with macroeconomic factors impacting the top-line performance. However, SLT-MOBITEL swiftly implemented strategic cost optimisation measures, which enabled the company to realise significant operational cost savings of 2.7 per cent at the group level,” the statement said.
SLT-MOBITEL’s cost-saving efforts comprised various initiatives, including rationalising annual maintenance costs, vehicle hiring charges, international settlement charges, and repair and maintenance expenses. These measures contributed to an EBITDA increase of 10.3 per cent year-on-year.
Despite the increase in EBITDA, the group’s operating profit declined by 1.9 per cent due to higher depreciation expenses resulting from substantial investments in capital expenditure programmes. The company’s net Profit after Tax also experienced a year-on-year decrease, primarily influenced by lower operating profit and reduced interest income due to declining interest rates.
On a positive note, SLT-MOBITEL witnessed an increase in Profit after Tax when compared to the previous quarter (Q4 2023), driven by improved EBITDA and operating profit, as well as forex gains and reduced interest costs.
During the quarter, SLT-MOBITEL made substantial contributions to the government through taxes, levies, and dividends, demonstrating its commitment to supporting the nation’s economic development.
“Looking ahead, SLT-MOBITEL is confident in the long-term growth prospects of the Sri Lankan economy and the business with the significant investments made, particularly in the SEA-ME-WE 6 (South East Asia-Middle East -Western Europe) undersea cable system. The SEA-ME-WE 6 undersea cable system is expected to provide SLT-MOBITEL with increased international bandwidth capacity and improved connectivity, further strengthening the company’s position in the telecommunication industry,” the company said.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!