Sri Lanka Telecom PLC (SLT) released its financial performance for the year ending
31st December 2018. The Group comprises of the holding Company and eight
subsidiaries including the mobile arm, Mobitel (Pvt) Ltd having a subscriber base of
over 9 million.
The Group posted a revenue of Rs.81.44 bn during the year under review with
impressive growth of 7.53%. The growth was reported in all the segments, however it
was largely driven by Enterprise and Carrier related businesses, FTTH, IP TV and Data
related services together with mobile operations. Understanding the world-wide
trends, the Group is now more focusing on data related products.
During the year under review the Group reported Rs.36.64 bn Gross Profit with
12.66% year on year growth. Net Profit after tax of the Group for the year 2018 was
reported at Rs. 4.95 bn with an impressive growth of 25.58% compared to the
previous year. Owing to the better management of operating costs coupled with
decent growth in revenue, the Group has been able to record this strong growth of
profit despite the negative impact of Rs. 1.81 bn recorded due to FOREX losses. The
Group EBITDA margin was reported at 31.38 % compared to 28.00 % in the previous
year.
Mr. Kumarasinghe Sirisena, Group Chairman stated that “ It is a testament to the
Group’s leading telecommunication service provider status as well as the public’s faith
in the Group that despite challenges, Sri Lanka Telecom is able to go from strength to
strength each year. I am confident that the coming year too will see a substantial
growth as SLT has laid the groundwork for a sustainable future, especially through its
strategic transformational journey into a Digital Service Provider.”
At Company level, Rs. 47.39 bn revenue was reported during the year under review.
As explained above the FTTH, IP TV and data related services together with Carrier
related and Enterprise businesses have largely driven the revenues to this level. The
Company Gross Profit was reported at Rs.19.13 bn with year on year growth of 6.00%.
Exhibiting a Year on Year growth of 33.47 %, company Net Profit after tax reached to
the level of Rs.1.91 bn. Profit was largely impacted by the Rs. 1.20 bn FOREX losses.
However, the growth of revenue and better management of operating costs have
boosted the profits. The Company has taken initiatives to mitigate any future FOREX
losses using hedging strategies.
Revenue growth coupled with marginal cost escalations, the Company EBITDA margin
reached to 28.40% from 25.55% of the year before.
As a strong Group of Companies however we need to be ready and knowledgeable to
steer through challenging market conditions and managing our resources to maximize
our capacity. I am proud that SLT is a resilient Group. Our Numbers speaks volumes”
said Mr. Kiththi Perera, CEO of the holding Company.
Mr. Priyantha Fernandez, COO added “Our Island wide reach has been strengthened
by restructuring the operations. Our digital transformation and IT diversification has
enriched digital based products and services to increase customer experience and
customer satisfaction. We strategically focus on operational excellence in all segments
with customer at the forefront.”
