Business
SLT Group achieves stable revenues for Q1, remaining resilient despite challenges
Sri Lanka Telecom Group (SLT Group), the National ICT Solutions Provider, recorded positive consolidated revenues of Rs. 26.6 Bn for Q1 2023, an increase of 2.1%, compared to the same period last year, led by robust growth at company level from SLT, demonstrating resilience and optimism in the future undeterred by the challenging environment.
The SLT Group’s revenue growth was mainly driven by SLT company revenues of Rs. 17.6 Bn recorded for the quarter, an increase of 10.7%, from last year’s corresponding period. Notably, the SLT Group Management’s strategic vision for the company, and prudent action to mitigate the impact of macro-economic issues have resulted in this achievement. However, Group revenues were weighed down by the mobile services arm of the Group.
SLT Group Chairman, Rohan Fernando stated, “We are proud of the stride we have made towards stabilizing our business, unifying our operations and platforms, and transforming into a future-ready technology company. However, the true testament to our success lies in our lean and target-based operational structure, which has enabled us to weather the most trying circumstances and emerge with optimism for the future.”
Overall, SLT Group profitability was impacted by direct operational costs. At Group level, Direct Costs swelled to Rs. 15.9 Bn, an increase of 7.6% year-on-year, while at Company level it was at Rs. 9.8 Bn, a rise of 6.8%. The escalation in costs were related to international payments, electricity tariff hikes and annual maintenance charges to foreign vendors. Additionally, administrative costs have also risen significantly to Rs 5.8 Bn at Group level and Rs. 4.5 Bn at SLT Company level for the quarter, an 8.7% and 7.4% increase respectively, once again mainly attributed to inflation and the devaluation of LKR against USD. On a positive note, depreciation and amortization has been reduced, at SLT Group level by 13.6% and at Company level by 19%, reflecting the true value of assets.
Group operating profit has been impacted by the hike in operating expenses which includes an increase in utility cost attributed to the tariff increase, international payments, and annual maintenance costs because of the depreciation of the local currency against the USD and inflation that prevailed in the country. However, at Company level, SLT recorded a healthy YoY increase of 74.4% in operating profit. Overall, at Group level, Profit Before Tax has reduced by 54% YoY mainly driven by finance costs due to the massive increase in interest rates.
Noteworthily, eliminating forex losses shows an improvement in earnings at Company level for the quarter under review. Profit before Tax after eliminating forex loss at Company level is Rs. 1.1 Bn. Additionally, normalized Profit after Tax by eliminating forex impact is Rs. 0.9 Bn at Company level.
The Group’s mix of foreign currencies supported Mobitel’s and VisionCom’s gain from the Rupee appreciation during Q1 compared to last year’s corresponding period due to bearing USD loans and liabilities. However, SLT incurred a loss because of its USD reserves.
Despite the ongoing macroeconomic challenges, the SLT Group remains committed to delivering value to all stakeholders. Investments in the SEA-ME-WE 6 cable and facilitation of the fiber network to ensure high-speed connectivity are also ongoing to enable seamless access to transition into an era of digital services.
The Group understands its responsibility to meet present and future technological and communication needs of the country. Working towards this goal, it remains focused on its stability and performance, infusing innovations into its core business and undertaking prudent cost saving measures. Navigating challenging and volatile market conditions, the Group has emerged stronger, securing business sustainability equipped with a future-ready workforce. (SLT)
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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