Sri Lanka Telecom Group (SLT Group) has reported positive overall revenue of Rs 79.6 Bn, a consolidated growth of 3.9% for the first nine months of 2022 compared to the corresponding period last year, driven largely by prudent and proactive measures undertaken in financial and operational management.
Demonstrating resilience in its business model, at Company level, SLT Q3 revenue grew to Rs 16.9 Bn, an increase of 7.4% when compared to the corresponding period last year, also reflected in optimistic year-to-date growth of 10.6% at Rs 49.4 Bn. SLT Group’s contribution to the Governmentduring the first nine months of 2022 amounted to Rs. 21 Bn. 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 Bn, in comparison to the previous quarter. Weighing down growth, a negative 3.4% in Gross Profit at Rs 33.4 Bn was recorded for the first nine months of the year, compared to the corresponding period last year. Group Profit After Tax (PAT) growth declined to 27.1% (QoQ) while year-to-date also reflected a downward momentum at 34.1%.
At Company level, SLT posted a positive 9.3% Gross Profit increase of Rs 7.2 Bn for Q3, QoQ and ended the nine months of the year also in a similar trend of 7.1% at Rs. 20.4 Bn. At Company level, Profit Before Tax for the first nine months recorded a increase of 136.1% when compared with the corresponding period last year, owing to a forex gain of Rs. 5.6 Bn. attributable to USD deposits, Dividend Income of Rs. 2.3 Bn. and Rs. 1.1 Bn. in interest Income earned from USD deposits.
PAT for the period saw considerable growth of 82.8% at Rs 9.3 Bn mainly due to forex gains as a result of Rupee devaluation, and dividend income received from subsidiaries. PAT growth for the Company in Q3 was a negative 76.6% compared to last quarter (QoQ).
SLT Group Chairman, Rohan Fernando said, “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.”
The mobile services arm of the Group, Mobitel has experienced a revenue decline in Q3’ 22 against the corresponding period in the previous year, impacted by macroeconomic challenges, tax changes and reduction of domestic interconnect charges.