SLT group revenue crosses Rs. 86 bn, PAT grows by 28% in FY 2019

Sri Lanka Telecom PLC ( SLT) concluded the financial year 2019 on a high note, with 28 per cent YoY growth in Profit After Tax (PAT) at Rs. 6.3 billion.

The impressive growth was strongly underpinned by the increase in revenues by 6 per cent YoY recorded at Rs. 86 billion. “The group’s robust plans directed at achieving strong performance amidst the market competition paved the way to attain positive contributions in all key business segments of fixed and mobile broadband, global business, career domestic, enterprise intelligent business solutions, PEO TV services, national backbone services and digital services whilst managing the operational efficiency,” the company said in a media release late on Friday.

The group’s EBITDA rose to Rs. 30 billion, reflecting a 17 per cent increase compared with the year before, improving the EBITDA margin to 34.9 per cent from 31.4 per cent in 2018 due to the improved revenues and operational efficiency.

Operating profit grew by 12 per cent YoY reaching Rs. 8.5 billion in the year under review. Interest cost increased by Rs. 1.8 billion to Rs. 2 billion as a result of increased borrowings to finance the growing capital expenditure in order to align with the global technological trends and fulfilling the changing customer demands.

The forex loss was managed at Rs. 443 million for the year from Rs. 1.8 billion in 2018 as a result of the reduction of foreign currency denominated borrowings and effective hedging strategies.

Profit Before Tax (PBT) stood at Rs. 8.2 billion, a 15 per cent YoY growth. The SLT group paid over Rs.25 billion in direct and indirect taxes and other contributions to the Government in 2019.

Group ch a i r man Rohan Fernando, said: “2019 was yet again a tremendous year to the SLT demonstrating a remarkable financial performance, managed with an eye towards not only on the short- run, but on the long- run as well. The strength of the group lies on the expertise, commitment and the loyalty of the management team and the staff. The telecommunication industry continues as an attractive sector, whilst changing customer preferences and rapid technological trends bringing both challenges and opportunities.”

Kiththi Perera, CEO of the holding company, stated, “The ongoing accelerated Fibre Expansion Project under the National Fiberization Programme will increase the fibre footprint across the country targeting consumer, enterprise and government sectors. Further, we are in the process of increasing the 100 Mbps speed of FTTH ( Fibre- to- theHome) connections to 1 Gbps to provide an ultra-speed experience to our valued customers. The forthcoming deployment of 5G technology in Sri Lanka will immensely improve the business of the SLT by utilising the transport network by other operators which lies across the country.”