SLT-Mobitel has demonstrated notable financial performance in the first half of 2024, highlighting its resilience in a challenging market. The company achieved moderate revenue growth and significant improvements in operational efficiency, reflecting successful cost management strategies.
For the first six months of 2024, SLT-Mobitel reported a revenue of Rs.53.5 billion, a 1.6 percent increase from the previous year. This growth was driven by strategic initiatives despite facing market challenges like customer churn and decreased demand for new connections. Gross profit rose by 4.0 percent to Rs.20.9 billion, with the gross profit margin expanding from 38.1 percent to 39.0 percent.
The company’s EBITDA saw a substantial increase of 17.1 percent, reaching Rs.18.0 billion, while operating profit surged by 54.5 percent to Rs.3.6 billion. This improvement in EBITDA margin—from 29.2 percent to 33.6 percent—underscores SLT-Mobitel’s enhanced operational efficiency and service quality.
Additionally, SLT-Mobitel benefited from a 19.5 percent reduction in finance costs due to lower interest rates, contributing to a significantly narrowed net loss of Rs.323 million, down from Rs.1,159 million in the same period last year.
At the company level, Sri Lanka Telecom PLC reported a slight revenue increase of 0.9 percent to Rs.35.0 billion. Strategic cost-saving measures led to a reduction in operational expenses, boosting the operating profit by 2.9 percent. Finance costs decreased by 27.2 percent, helping the company post a net profit of Rs.272 million, a substantial recovery from a loss of Rs.401 million in the previous year.
Mobitel, a division of SLT, also showed a positive trajectory with a revenue growth of 3.6 percent, driven by increased demand for broadband services and streamlined product offerings. The company’s EBITDA grew by 26 percent, and operational profit turned positive to Rs.182 million from a loss of Rs.895 million previously. The reduction in net loss by 28.9 percent further signifies Mobitel’s operational improvements.
Investments in network infrastructure and the acquisition of new spectrum in the 2.3 GHz and 850 MHz bands are expected to greatly enhance network capacity and coverage, promising an improved customer experience moving forward.
Overall, SLT-Mobitel’s first-half performance in 2024 showcases its effective adaptation to market dynamics and its commitment to driving growth and sustainability in the telecom sector.