Huge losses at SLT in 2023

The SLT Group’s financial results for the fourth quarter and financial year ending December 31, 2023, has reflected a downturn in performance amidst a turbulent macroeconomic environment in the country.

For 4Q 2023, SLT Group reported a year-on-year consolidated revenue drop of 7.5 per cent amounting to Rs.26 billion compared to Rs.28 billion in 2022.

The decline was due to reduced revenue, despite the efforts of cost optimisation measures that resulted in a 5.9 per cent reduction in Operating Expenses (Opex). Consequently, the Group saw a corresponding decline in operating profit, with both Profit Before Tax (PBT) and Profit After Tax (PAT) experiencing decreases in the quarter.

The group’s operational costs rose by 9.4 per cent to Rs.74 billion compared to Rs.68 billion in 2022, mainly due to increased electricity tariffs. Additionally, other costs, including, annual maintenance contract costs, vehicle hiring, fuel, and repair costs, contributed to the overall cost increase year-on-year.

In the 12-month period of 2023, the group experienced a loss of Rs.3.9 billion, contrasting sharply with the profit of Rs.4.8 billion recorded in 2022, reflecting a staggering decline of 182.3 per cent. Similarly, SLT and Mobitel individually reported losses of Rs.1.1 billion and Rs.3.6 billion for the year, respectively.

However, the group recorded an operating profit of Rs.549 million in 3Q 2023, followed by a surge to Rs.1.2 billion in 4Q 2023, indicating optimistic future forecasts.

Janaka Abeysinghe, CEO, SLTMOBITEL Group noted, “Looking ahead, macro-economic uncertainty persists. Despite the year-on-year decline in profitability, we are optimistic and see encouraging signs for 2024. Our cost base is under continuous review and adjusted to match market conditions. Given these fundamental strengths, we believe we will overcome negatives in these challenging markets and are confident in driving the long-term profitability of the group.”