Sri Lanka Telecom (SLT) released its financial results for the three months ending 31 March 2020, with quarterly revenue up 3.8% to LKR22.1 billion (USD118.8 million) from LKR21.3 billion in the corresponding period a year ago. The carrier said that amid the ongoing COVID-19 pandemic it undertook measures to rein in its operational costs and CAPEX, resulting in a cost saving of around 5% in 1Q20, to LKR704 million, and operating profit of LKR3.2 billion, up 28.6% on an annualised basis. However, as a result of the depreciation of the local currency (rupee) arising from the pandemic situation, the group’s total forex loss amounted to LKR683 million, up sharply from LKR172 million in 1Q19, as rising borrowings ‘raised the financial cost of the Group by LKR317 million for the quarter’. Consolidated net profit, meanwhile, stood at LKR1.9 billion in the three months under review, down 14.6% compared to the year-ago quarter, due to ‘provisioning for overdue debtors, exchange loss and increase in financial cost’.
Commenting on the results, Rohan Fernando, Group Chairman, said: ‘I’m proud of the management team and staff for their dedication and commitment in providing an uninterrupted service to the nation during the COVID-19 pandemic’. Chief operating officer Priyantha Fernandez added: ‘The ongoing accelerated Fiber expansion project of SLT under the National Fiberization Program will further increase the Fiber footprint across the country targeting consumer, enterprise and government sectors, allowing them to enjoy ultra-high speed broadband access with lowest latency and availing an array of high definition audio and video entertainment and digital services. Further, the recently launched global brand “Xyntac” will better position itself in the global market. Accordingly, “Xyntac” will promote voice, data and connectivity and innovative digital services with its product portfolio to cater to the ever evolving global market requirement.’