SLT Group delivers strong 1Q25 as Mobitel lifts top line

Sri Lanka Telecom (SLT) Group reported a profit after tax of Rs. 2.00 billion for the quarter ended 31 March, sharply higher than Rs. 156 million a year earlier, supported by tighter financial management and improved operational efficiencies.

Group revenue rose 3.4 percent year-on-year to Rs. 27.85 billion, driven mainly by higher contributions from its mobile unit, Mobitel, while revenue from SLT PLC remained broadly stable.

The Group’s cost optimisation initiatives continued to yield positive results, with operating expenses decreasing 2.9 percent to Rs. 710 million compared to the same period last year. The reduction, combined with revenue growth, led to a 13 percent increase in EBITDA to Rs. 10,443 million.

At company level, SLT PLC reported a marginal 0.7 percent  increase in revenue of Rs. 117 million compared to 1Q 2024, primarily driven by growth in enterprise, small and medium enterprises (SMEs) and broadband streams.

SLT PLC also achieved significant cost declines, with operating expenses decreasing 5.2 percent to Rs. 838 million Year-on-Year (YoY). Notably, electricity expenses fell 38.3 percent following tariff reductions in March and July 2024. Vehicle hiring and fuel costs also decreased 22.7 percent, and repair and maintenance expenses curtailed by 12.5 percent.

SLT PLC specifically demonstrated impressive profit growth, with PAT increasing by 369.9 percent to Rs. 1,344 million compared to Rs. 286 million in 1Q 2024. The notable performance was supported by a 380 percent surge in Profit Before Tax (PBT) to Rs. 1,920 million and a 60.3 percent increase in Operating Profit to Rs. 2,538 million. 

Mobitel demonstrated strong financial performance in the first quarter of 2025, reporting notable revenue growth supported by the growth of data services. Total revenue reached Rs. 11.8 billion, reflecting the company’s success in capitalising on demand for digital connectivity. Enhanced top-line performance, combined with effective cost reduction initiatives, led to a significant improvement in profitability. 

EBITDA increased by 28.5 percent, resulting in a healthy EBITDA margin of 30 percent. Operating profit (EBIT) also recorded a marked improvement by 392 percent, with a 7 percent EBIT margin. PBT saw considerable growth, and the company successfully turned around its financial position, moving from a net loss in the first quarter of 2024 to a net profit of Rs. 477 million in the same period of 2025.

In a commentary that followed the release of the financial results, the entity said that leveraging strong 1Q results as a foundation for 2025 growth, the SLT Group aims to continue the ongoing digital transformation journey delivering innovative solutions and expanding services to meet customer needs.