Business
SLT Group’s Operating Profit soars by 55% in first-half 2020, despite Covid-19 pandemic
Sri Lanka Telecom PLC (SLT) Group released its financial results for the first-half of 2020 recording a remarkable 55% YoY growth in its Operating Profits to Rs. 6.9 bn, amidst the many challenges caused by the Covid-19 pandemic.
The Group revenue reached Rs. 44.1 bn during the first six months of 2020 demonstrating a moderate growth of 3.6% YoY, primarily due to the relief packages and free data offers to customers by SLT together with its mobile arm Mobitel (Pvt) Ltd, to assist the customers during the pandemic. The unexpected delays in investment projects owing to the pandemic too impacted adversely on the top line. Nevertheless, surge in utilization in Broadband, IPTV and Career Business services in both residential and business sectors due to the work from home arrangements and temporary closure of many educational and business entities, lifted the revenues of the Group.
Stringent cost management measures reduced the Operating Costs before Depreciation and Amortization by 7% YoY, raising EBITDA margin to 40.5% from 33.4% in the year before. EBITDA of the Group stood at Rs. 17.8 Bn, up 25% YoY. The Interest Expenses and Finance Costs rose to Rs. 1.4 bn from Rs. 0.6 bn as a result of increased borrowings to finance the growing capital expenditure in order to align with the global technological trends and fulfilling the changing customer demands. FOREX losses of the Group mounted to Rs. 0.9 bn from Rs. 15 mn in the same period last year due to the depreciation of Sri Lankan rupee against USD, arising from the adverse impacts of the Covid-19 pandemic. Other Income of the Group grew to Rs. 0.5 bn, up 85% YoY which improved the Group profits.
Group Profit Before Tax (PBT) recorded at Rs. 5.7 bn, a 22% growth compared to the year before, while Profit After Tax (PAT) posted at Rs. 4.6 Bn, demonstrating a YoY increase of 31%. Growth in revenues coupled with efficient cost management techniques pushed the PAT margin up to 10.4% from 8.2% for the same period the year earlier.
The Group experienced a drop in customer collections during early stages of the pandemic emanating from the low disposable income levels of customers. However, the effective collection strategies of the Group improved collections in later stages of the pandemic, normalizing the cash flows from collections for the period. Regulatory instructions to refrain from disconnecting the unpaid subscribers, brought challenges in collecting the billed revenue. Managed profits coupled with healthy bill collections, limiting capital expenditure to critical areas and shifting to deferred payment plans for procurement led to a positive Cash & Cash Equivalents balance of Rs. 6.5 Bn at the end of the reporting period.
During the first-half of 2020, SLT Group paid out a total of Rs. 8.1 bn as Direct and Indirect Taxes and Levies to the government of Sri Lanka.
(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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