Sri Lanka Telecom back in the black with Rs.3.1bn profit for 2024

CEO Janaka Abeysinghe

Sri Lanka Telecom (SLT) posted a profit of Rs.3.1 billion for 2024, marking a turnaround from a loss of Rs.3.9 billion in the previous year, driven by the improved operational performance and cost optimisation across its fixed and mobile segments.

Group revenue for the year rose 4.4 percent to Rs.111.1 billion, while gross profit jumped 19.6 percent to Rs.46.1 billion, the company said in a statement.

The group’s focus on operational efficiency resulted in a 4 percent reduction in operating expenses to Rs.71.2 billion, contributing to a 23.7 percent improvement in EBITDA to Rs.40 billion and a considerable 172.8 percent increase in operating profit to Rs.11.2 billion. Finance costs were also reduced by 20.5 percent to Rs.9 billion, supporting the group’s outstanding turnaround. 

The SLT group demonstrated a strong financial performance, with robust results in the fourth quarter. Revenue reached Rs.29.1 billion, showing an impressive growth of 11.9 percent compared to 4Q 2023 and maintaining a momentum with 1.8 percent sequential growth from 3Q 2024. The quarter saw important improvements across the key metrics for the group, with gross profit rising to Rs.12.9 billion, up 50 percent year-on-year (YoY), EBITDA growing to Rs.11.5 billion, an increase of 28.9 percent and the operating profit more than doubling to Rs.4 billion.
The SLT group’s 4Q 2024 also delivered a notable PAT of Rs.2.4 billion, representing a significant improvement from Rs.1.1 billion in 3Q 2024, a 115 percent growth and an even more dramatic turnaround from the loss of Rs.1.2 billion in 4Q 2023. The quarterly performance contributed to a strong finish for the year, showcasing the success of the group’s strategic initiatives in operational efficiency and cost management.

The SLT group remained a key contributor to the state revenues, delivering a total of Rs.31.5 billion to the government of Sri Lanka as taxes and levies during the year 2024.

At company level, SLT delivered a steady growth as of December 2024, with an increase of revenue by 2.3 percent to Rs.71.3 billion. The company’s broadband segment grew by 5.4 percent, led by the FTTH services, while enterprise revenue surged by 11.8 percent. The government sector and SME segments showed a strong growth of 11.0 percent and 23.6 percent, respectively. The cost optimisation efforts yielded considerable results, with a 2.2 percent reduction in operating expenses, including notable savings in the AMC costs and internet backbone charges. The company reported a net profit of Rs.2.1 billion for FY 2024.

SLT delivered a strong performance in the fourth quarter of 2024, with revenue reaching to Rs.18.3 billion, representing a 3.9 percent increase compared to 4Q 2023. The growth was primarily driven by multiple revenue streams, with broadband revenue increasing by 10.2 percent, led by the FTTH services. The enterprise sector revenue grew by 11 percent, supported by the increased earnings from the networking, internet and managed services. The government sector showed an impressive growth of 14.3 percent, while the SME sector revenue rose by 20.9 percent. 
During the quarter, the company’s operational efficiency improved significantly, with the operating profit growing by 17 percent to Rs.1.8 billion, supported by effective cost management and a 4.6 percent reduction in depreciation. As a result, SLT recorded a net profit of Rs.909 million for 4Q 2024. 

The group’s mobile segment, Mobitel, achieved a significant turnaround in 2024, with revenue growing 7.4 percent to Rs.45.8 billion compared to 2023, driven by the broadband growth. The EBITDA margin improved significantly to 30 percent, up 9 percentage points from 2023, reflecting both revenue growth and successful cost optimisation strategies, further supported by a 4.9 percent reduction in operating costs through targeted optimisations across all functions, including marketing, distribution and admin.

Mobitel reversed its operating loss, recording an operating profit of Rs.2.9 billion in 2024 and achieving a positive net profit of Rs.0.1 billion, compared to Rs.3.7 billion losses in 2023. 

During 4Q 2024, Mobitel delivered exceptional results, with revenue growing 14.3 percent YoY to Rs.12.3 billion. EBITDA rose by 137.1 percent to Rs.4.6 billion, with the margin improving to 37 percent. Operating profit showed a substantial growth of 478 percent YoY to Rs.1.8 billion, while net profit reached Rs.1.2 billion, a 191.8 percent improvement. The quarter demonstrated a strong momentum, with 12.5 percent reduction in operating costs and continued improvement across all key metrics.