SLT Group 1Q 2020 operating profits rise by 28%

Sri Lanka Telecom PLC Group operating profit for the quarter to end-March 2020 was reported at Rs.3.2 billion, an improvement of 28.6 per cent compared same period in the previous year.

Total revenue for the quarter was Rs.22.1 billion, a 3.8 per cent increase compared to Rs. 21.3 billion during the same period in 2019.

In a media release on Friday, the company said group net profit fell by 14.6 per cent to Rs.1.9 billion when compared with the previous end March 2019 quarter. This, it said, was due to provisioning for overdue debtors, exchange loss and increase in financial cost.

During the period under reference, SLT paid out a total of Rs.4.4 billion as direct and indirect taxes and levies to the Government. Stringent measures were taken to manage operational cost and investments in capital expenditure, which resulted in cost savings of 5 per cent for the quarter amounting to Rs.704 million.

Due to the depreciation of the Sri Lanka Rupee arising from the coronavirus crisis, the total forex loss for the group was Rs.683 million compared to a gain of Rs.172 million for the same period in 2019.

Commenting on the results, Rohan Fernando, the Group Chairman, stated, “I’m proud of the management team and staff for their dedication and commitment in proving an uninterrupted service to the nation during the COVID19 pandemic, while recognising the national responsibility of the group. The group offered free unlimited data and several other offers by both SLT and Mobitel, making the connections among family, friends and relatives easier. By now, we are fully prepared and equipped not only to survive amidst the pandemic, but also to reap the emerging opportunities with novel digital products and services”.