By: Staff Writer
March 02, Colombo (LNW): Sri Lanka Telecom (SLT) Group, the nation’s leading telecommunications provider, recorded a remarkable financial turnaround in 2024, driven by operational efficiency and strategic cost optimization.
The company reported significant improvements across both fixed and mobile segments, demonstrating steady momentum throughout the year and reinforcing its position as a key player in the industry.
The Group posted a Profit after Tax (PAT) of Rs. 3.1 billion in 2024, a substantial recovery from the Rs. 3.9 billion loss recorded in 2023.
This represents an impressive turnaround of Rs. 7 billion. Total revenue grew by 4.4% to Rs. 111.1 billion, while gross profit surged by 19.6% to Rs. 46.1 billion.
The Group’s rigorous focus on cost efficiency led to a 4% reduction in operating expenses, bringing them down to Rs. 71.2 billion.
As a result, EBITDA improved by 23.7% to Rs. 40 billion, and operating profit saw an extraordinary increase of 172.8% to Rs. 11.2 billion. Finance costs were also reduced by 20.5% to Rs. 9 billion, further supporting the Group’s financial resurgence.
The strong financial performance was particularly evident in the fourth quarter of 2024, with revenue rising to Rs. 29.1 billion—an 11.9% year-on-year increase and a 1.8% sequential growth from Q3 2024.
Gross profit for the quarter soared by 50% to Rs. 12.9 billion, while EBITDA grew by 28.9% to Rs. 11.5 billion. Operating profit more than doubled to Rs. 4 billion. The Group’s Q4 PAT reached Rs. 2.4 billion, marking a 115% improvement from Q3 2024 and a stark contrast to the Rs. 1.2 billion loss in Q4 2023.
As a significant contributor to state revenues, SLT Group paid Rs. 31.5 billion in taxes and levies to the Government of Sri Lanka in 2024. At the company level, SLT reported steady growth with revenue increasing by 2.3% to Rs. 71.3 billion.
The broadband segment, particularly its Fiber-to-the-Home (FTTH) services, grew by 5.4%, while enterprise revenue surged by 11.8%. The government sector and SME segments expanded by 11.0% and 23.6%, respectively.
Cost optimization efforts led to a 2.2% reduction in operating expenses, with notable savings in maintenance and internet backbone costs. The company reported a net profit of Rs. 2.1 billion for the year.
In Q4 2024, SLT’s revenue rose by 3.9% to Rs. 18.3 billion, driven by broadband growth (10.2%), enterprise revenue expansion (11%), and increased contributions from government (14.3%) and SME sectors (20.9%). Operational efficiency improved, with a 17% increase in operating profit to Rs. 1.8 billion, supported by a 4.6% reduction in depreciation costs. Net profit for the quarter stood at Rs. 909 million.
Mobitel, the Group’s mobile arm, achieved a significant financial turnaround in 2024, with revenue increasing by 7.4% to Rs. 45.8 billion, supported by broadband expansion. EBITDA margin improved to 30%, reflecting revenue growth and cost optimization, while operating profit rose to Rs. 2.9 billion. Mobitel reversed its previous year’s net loss of Rs. 3.7 billion to record a net profit of Rs. 0.1 billion.
The fourth quarter saw exceptional results for Mobitel, with revenue growing 14.3% year-on-year to Rs. 12.3 billion. EBITDA increased by 137.1% to Rs. 4.6 billion, while operating profit surged by 478% to Rs. 1.8 billion.
Net profit for the quarter improved by 191.8% to Rs. 1.2 billion, with a 12.5% reduction in operating costs further strengthening the company’s financial standing.
Cementing its leadership in the mobile network space, Mobitel was recognized as Sri Lanka’s fastest mobile network in the Ookla Speedtest Awards for 2024, reflecting its commitment to expanding coverage and enhancing customer experience.
The SLT Group’s financial success in 2024 highlights its effective execution of strategic initiatives focused on operational efficiency and digital transformation. With a strong foundation in place, SLT-Mobitel is poised for continued growth in 2025, emphasizing the expansion of its digital services portfolio and sustained operational excellence.
