SLT swings to profit on Mobitel turnaround, cost reductions

Sri Lanka Telecom (SLT) Group reported a sharp turnaround in its financial performance for the first half of 2025, driven by improved profitability and cost management, with subsidiary Mobitel returning to profitability after posting losses a year earlier.

The Group posted a consolidated profit after tax (PAT) of Rs. 4.3 billion in the six months ending June 30, compared with a loss of Rs. 323 million in the same period last year. 

At the company level, SLT recorded a net profit of Rs. 2.6 billion, up 873 percent from Rs. 272 million a year prior, while Mobitel swung to a Rs. 1.1 billion profit from a Rs. 1.1 billion loss.

Revenue momentum was steady, with Group turnover for the half rising 2.6 percent year-on-year, underpinned by Mobitel’s stronger contribution. Executives credited tighter governance, efficiency measures, and targeted spending for the gains.

“The SLT Group’s solid half-year performance, compared to a loss in the previous year, demonstrates the organisation’s resilience and effective execution,” said Chairman Mothilal de Silva. 

He added that sustained profitability and discipline position SLT to deliver “strong value to stakeholders” while driving the country’s digital economy.

In the second quarter, the SLT Group posted a Rs. 2.3 billion profit compared with a Rs. 479 million loss in the same period last year. 

At the company level, SLT swung to a Rs. 1.3 billion profit from a Rs. 14 million loss, while Mobitel delivered a Rs. 587 million profit against a Rs. 610 million loss a year earlier.

Operating profit growth accelerated, rising 148 percent year-on-year at the Group level. SLT’s operating profit climbed 61 percent, while Mobitel delivered an extraordinary 14,050 percent jump, underscoring its turnaround.

Group revenue for the quarter edged up 2.6 percent to Rs. 27.3 billion, with Mobitel driving growth at 6.4 percent year-on-year. At the company level, SLT reported Rs. 17.7 billion in revenue, a 2.5 percent increase.

Cost optimisation continued to underpin profitability, with group direct costs falling 13.5 percent year-on-year in second quarter. 

SLT cut direct costs by 10.3 percent, while Mobitel reduced them by 4 percent. Finance costs fell 18.9 percent at the group level, led by a 31 percent drop at SLT as borrowings eased. However, Mobitel’s interest expenses rose 23.5 percent, driven by project financing and working capital needs.