SLT-Mobitel has demonstrated resilience in the first half of 2024, reporting moderate revenue growth alongside significant improvements in profitability.
For 1H2024, the group’s revenue reached Rs.53.5 billion, reflecting a 1.6 percent increase from the previous year. Gross profit grew by 4.0 percent to Rs.20.9 billion, with the gross profit margin expanding to 39.0 percent. Despite market challenges such as customer churn and reduced demand for new connections, SLT-Mobitel achieved these gains through effective cost management.
The group’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) saw a notable increase of 17.1 percent, reaching Rs.18.0 billion. Operating profit surged by 54.5 percent to Rs.3.6 billion, with the EBITDA margin improving to 33.6 percent from 29.2 percent in the previous year. These results highlight the company’s enhanced operational efficiency and service quality.
SLT-Mobitel also benefited from a 19.5 percent reduction in finance costs, largely due to lower interest rates. This contributed to narrowing the net loss to Rs.323 million, a significant improvement from the Rs.1,159 million loss reported in 1H2023.
At the company level, Sri Lanka Telecom PLC saw a marginal revenue increase of 0.9 percent to Rs.35.0 billion. Operating profit grew by 2.9 percent, driven by strategic cost-saving measures. Finance costs decreased by 27.2 percent, resulting in a net profit of Rs.272 million, reversing the Rs.401 million loss reported in 1H2023.
Mobitel, part of SLT-Mobitel, achieved a 3.6 percent revenue growth year-on-year for 1H2024, despite a 3 percent increase in Value Added Tax. This growth was driven by increased demand for broadband services and streamlined product offerings. Mobitel’s EBITDA improved by 26 percent, and operating profit turned positive to Rs.182 million, up from a loss of Rs.895 million in 1H2023. Net loss reduced by 28.9 percent compared to the same period last year.
Ongoing investments in network infrastructure, including a newly acquired spectrum portfolio, are expected to further enhance network capacity and customer experience.
SLT-Mobitel remains focused on leveraging its strategic initiatives to drive future growth and deliver long-term value to its stakeholders.