Sri Lanka Telecom Group (SLT Group) reported positive overall revenues of Rs. 79.6 billion, a consolidated growth of 3.9% for the first nine months of 2022 compared to the same period last year, driven largely by “prudent and proactive measures undertaken in financial and operational management”, the company noted in a release.
At a company level, SLT’s third-quarter (3Q22) revenues grew to Rs. 16.9 billion, an increase of 7.4% when compared to the same period last year, also reflected in optimistic year-to-date growth of 10.6% at Rs. 49.4 billion. SLT Group’s contribution to the Government of Sri Lanka during the first nine months of 2022 amounted to Rs. 21 billion, in direct and indirect taxes including levies and dividends.
The group’s gross profit growth for Q3 witnessed a marginal 0.8% increase at Rs. 11.1 billion, in comparison to the previous quarter. Weighing down growth, a negative 3.4% in gross profit at Rs. 33.4 billion was recorded for the first nine months of the year, compared to the same period last year. Group Profit After Tax (PAT) growth declined to 27.1% quarter-on-quarter (QoQ), while year-to-date PAT also reflected a downward momentum at 34.1%.
At company level, SLT posted a 9.3% QoQ gross profit increase of Rs. 7.2 billion for 3Q22 and ended the nine months of the year with a similar increase of 7.1%, at Rs. 20.4 billion. Furthermore, at company level, profit before tax (PBT) for the first nine months recorded a significant increase of 136.1% when compared with the same period last year, owing to a forex gain of Rs. 5.6 billion attributable to USD deposits, dividend income of Rs. 2.3 billion and Rs. 1.1 billion of interest income earned from USD deposits. PAT for the same period saw considerable growth of 82.8% at Rs. 9.3 billion, mainly due to forex gains as a result of the rupee devaluation, and dividend income received from subsidiaries. PAT growth for the company in 3Q was a negative 76.6% QoQ.
SLT Group Chairman Rohan Fernando said: “I am pleased to announce yet another quarter of positive revenue growth for the Group. The resilience in our results is primarily due to management intervention in containing costs, the reduction in energy costs, consolidation of operations moving into company owned premises, and asset monetisation subject to Government policy being stable to attract FDIs. These results demonstrate how we continue to make tangible progress in delivering steady revenues despite 2022 being one of the most difficult periods in the history of Sri Lanka. The company is cautiously moving into the fourth quarter meeting all obstacles with a positive outlook.”
Company revenue growth was primarily driven by increases in carrier domestic, broadband and carrier international revenue streams. Carrier domestic growth was predominantly from expansions in the provision of ethernet, international private leased circuit (IPLC), and internet leased line (ILL) services. Broadband saw revenue growth mainly from FTTH broadband, while carrier International growth was chiefly due to USD appreciation. However, domestic interconnection revenue dropped as a result of a direction by the Telecommunications Regulatory Commission of Sri Lanka (TRCSL) to reduce charges from April 2022 onwards.
Commenting on the future, the Chairman added: “The vision of the SLT Group of becoming a regional tech conglomerate will be pursued vigorously with the unified brand and consolidation of operations under one roof taking place gradually with the deployment of our state-of-the-art, high-tech, green building by the middle of 2023.”
SLT Group reports revenue close to Rs. 80 billion
14 Nov 2022
SLT Group reports revenue close to Rs. 80 billion
14 Nov 2022