SLT records steady operating profits for March quarter
Sees strong new demand for broadband and IPTV services with lockdowns Says future profits and cash flows under pressure from challenging collections
Sri Lanka Telecom PLC (SLT) reported steady revenues and strong operating profits for the three months ended March 30, 2020, although the telecom juggernaut is facing pressure on revenues, earnings and cash flows from delayed or at times no collections from subscribers who were provided with uninterrupted supply of services under regulatory instructions during the two-months long shelter-in-place conditions.
Sri Lanka’s largest fixed line operator recorded revenues of Rs.22.1 billion during the Januarymarch quarter, up 3.8 percent yearon-year (YOY).
The company said it saw an immediate increase in the broadband and IPTV services by the residential sector and data products by the business sectors, which were racing to facilitate work-from-home conditions for their staff to ensure business continuity.
To what extent this new found demand had an impact on the revenues in both the March quarter and in the ongoing one is yet to be announced, and the company said the pandemic had given rise to opportunities for future as there is demand from corporates and individuals for online and distance services to operate from home.