Sri Lanka Telecom Group (SLT Group), the National ICT Solutions Provider, posted stable growth for the First Half of 2022, with revenues increasing by 6% to Rs 52.9 billion and a 19.8% increase in profit before tax (PBT) at Rs 7.2 billion against the same period last year, showcasing resilience in its business model amidst complex socio-economic challenges facing the country.
Demonstrating operational efficiency, SLT Group’s EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) went up to Rs. 20.9 Bn for the first half of 2022, recording a growth of 7.8% compared to the corresponding period of the previous year. The EBITDA Margin stood at 39.7% for the period under review.
Building on the success of the previous quarter, the SLT Group was able to maintain a positive momentum for Q2 2022 recording gains of 4% in operating profit when compared to the previous quarter. The Group recorded a foreign exchange gain of Rs 135 million during the quarter due to the prudent foreign exchange strategies of the Group. However, profit after tax (PAT) declined by 26.5% in Q2 compared to the previous quarter, mainly owing to the increase in income tax expenses during the period.
The SLT Group continued its strategic plan implemented at the beginning of the year, consolidating its performance throughout Q2 as well. However, during the period from April to June, the Group faced several business growth challenges including an unprecedented economic crisis, import restrictions, inflationary pressures etc. Furthermore, ongoing investments were affected; new projects were also impacted due to the increase of operational costs and the energy and fuel crisis resulted in operational challenges. Overcoming uncertainties, the Group with resilience made headway in strategic investments, undertaking appropriate management controls, in addition to managing the revenue portfolio in multiple segments.
The Operating Cash Flows of the Group grew to Rs 23.5 billion, up by 21.2% year-on-year. The Group recorded a favourable cash and cash equivalents position of Rs 27 billion as at the end of the reporting period. SLT Group’s contribution to the Government of Sri Lanka during the First Half of 2022 amounted to Rs. 14 billion. in direct and indirect taxes including levies and dividends.
SLT Group Chairman, Rohan Fernando said, “The period under review has been one of the most challenging periods that SLT-MOBITEL has faced in recent times exacerbated by a tough operating environment. However, due to the agility in our business model to deliver growth and a motivated team effort, we have been able to successfully generate positive results.
We are determined to continue the incredible transformation we have been experiencing in 2021 across our markets and believe our major drivers of growth remain our technologically advanced portfolio and efforts in the digital space, will fuel future growth and drive our revenues in the coming quarters.”