SLT operating profit up by 55% in 1H2020, despite COVID crisis

Sri Lanka Telecom PLC ( SLT) Group, in its financial results for the first- half of 2020, has seen a remarkable 55 per cent YoY growth in operating profit to Rs. 6.9 billion despite the challenges caused by COVID-19.

Group revenue reached Rs. 44.1 billion during the first six months of 2020 demonstrating a moderate growth of 3.6 per cent YoY, primarily due to the relief packages and free data offers to customers by SLT together with its mobile arm Mobitel ( Pvt) Ltd, to assist the customers during the pandemic.

The group said in a media release that the unexpected delays in investment projects owing to the pandemic too impacted adversely on the top line. Nevertheless, a surge in utilisation in Broadband, IPTV and Career Business services in both residential and business sectors due to the work from home arrangements and temporary closure of many educational and business entities, lifted the revenues of the group.

Group Profit Before Tax (PBT) was Rs. 5.7 billion, a 22 per cent growth compared to the year before, while Profit After Tax (PAT) was Rs. 4.6 billion, a YoY increase of 31 per cent.

The group experienced a drop in customer collections during early stages of the pandemic emanating from the low disposable income levels of customers. However, the effective collection strategies of the Group improved collections in later stages of the pandemic, normalising the cash flows from collections for the period.

Group Chairman Rohan Fernando said: “The COVID-19 pandemic has posed an entirely new set and scale of challenges to business leadership, which most have not experienced before. I convey my gratitude to my management team and my staff for working together as one close unit in proactively managing the unprecedented challenges brought on by the pandemic. We have provided an uninterrupted service to the nation whilst offering relief packages and free data offerings to our valued customers.”