Sri Lanka Telecom posts Rs 7.9 bn PAT for 2020 | Daily News

Sri Lanka Telecom posts Rs 7.9 bn PAT for 2020

Group’s 4Q Operating Profit up by 27% , revenue recorded at Rs. 24 bn:

Sri Lanka Telecom PLC (SLT) Group concluded financial year 2020 on a high note, with a significant 25% YoY growth in profit after tax to Rs. 7.9 billion, despite many challenges faced by the Group arising from the COVID-19 pandemic.

Group revenue climbed to Rs. 91.1 billion for the year with a 6% YoY growth, strongly underpinned by higher broad band revenue propelled by the accelerated fibre expansion programme and growth in mobile broadband services.Revenue for PEOTV and carrier services also advanced during the year. SLT Group increased EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) by 16% YoY to Rs. 34.7 billion in FY 2020, leading to a higher EBITDA margin of 38% compared to 35% in the previous year, mainly achieved through successful cost management measures.

The Group revenue for Q4 2020, rose by 4% QoQ to Rs. 24 billion, recording the highest quarterly revenue achieved for FY 2020. The operating profit for the quarter increased by 27% compared to the same quarter of the previous year reaching Rs. 1.9 billion, a decline of 33% compared to 3Q 2020. The Group profit after tax for the quarter reported at Rs. 1.1billion, a drop of 48% QoQ, mainly due to the higher operating costs and adverse impact from fluctuation in foreign currencies.

Mobitel (Pvt) Ltd, the mobile arm of the SLT Group managed to grow its revenue despite adverse macroeconomic conditions prevalent in 2020. Mobitel reported a strong profitable growth due to simultaneous growth in revenue and reduction in operational expenditure. Mobitel revenue for FY 2020 stood at Rs. 43.2 billion, up by 8% compared to FY 2019. Backed by the growth in revenue and aptly supported by operational efficiencies, Mobitel was able to record significant growth in all key profitability indicators.

The Company recorded Rs. 3.1 billion improvement in EBITDA, an increase of 23% YoY. EBIT increased by Rs. 2.6 billion in FY 2020 which is an increase by 50% compared to FY 2019. Mobitel recorded its highest ever profit after tax of Rs. 4.9 billion in FY 2020, an increase by 54%YoY.

The Group paid a total amount of Rs.17.1billion as direct and in direct taxes including levies to the Government in FY 2020. SLT Group Chairman, Rohan Fernando said “Our financial results for 2020 have yet again demonstrated SLT Group’s resilience and success in providing essential telecommunication services to the country and community, notwithstanding unprecedented challenges arising from the COVID-19 pandemic. “In year 2021,we will focus on enhancing quality in our services and strengthening our strategy in fulfilling our customers’ needs.”

SLT Group Chief Executive Officer, Lalith Seneviratne opined: “We commenced 2021 with brand unification of SLT-Mobitel which is another milestone in SLT Group’s legacy. In mid-2021, SLT-Mobitel aimed to launch a pre-commercial 5G service using 3.5 GHz. Further, we have established a research and development centre to accelerate innovations in the Group and maintain our edge in the market”.

SLT Chief Executive Officer, Kiththi Perera stated: “During the pandemic, SLT Group offered uninterrupted services to the community including concessionary education packages to students and for Work-from-Home arrangements.

In response to business and community needs, we have introduced many digital channels for customer services, smart home solutions and a trading platform for agriculture products.”

Mobitel Acting Chief Executive Officer, Chandika Vitharana added: “In year 2020 Mobitel thrived in unexpected challenges and recorded a vibrant performance recording the highest profits ever in its 27-year history.

In line with the Government’s vision of digitizing Sri Lanka, Mobitel aggressively embarked on implementing rural connectivity solutions in the rural areas of the country.”