SLT GROUP

SLT Group delivers strong 1H 2025 performance with substantial profit growth

• Group records Rs.  4.3 billion PAT in 1H 2025, marking strong turnaround from loss in 1H 2024
• Group operating profit up 148% in Q2 2025, driven by disciplined execution and financial momentum
• Group finance cost down 18.9% in Q2 2025, reflecting prudent financial management
• SLT company PAT up 873%, reaching Rs. 2.6 billion from Rs. 272 million YoY in 1H 2025
• In 1H 2025, Mobitel delivers Rs. 1.1 billion profit, reversing a Rs. 1.1 billion loss YoY

The SLT Group reported strong financial performance for the second quarter and first half of 2025, demonstrating continued momentum through significant improvements in profitability and cost management strategies.

For the second quarter ended June 30, 2025, SLT Group achieved a Profit After Tax (PAT) of Rs. 2.3 billion, compared to a loss of Rs. 479 million in Q2 2024. At company level, SLT PLC recorded a strong rebound with PAT of Rs. 1.3 billion versus a loss of Rs. 14 million year-over-year (YoY), while Mobitel contributed Rs. 587 million compared to a loss of Rs. 610 million in Q2 2024.

The Group’s half-year performance was equally impressive, with PAT reaching Rs. 4.3 billion compared to a loss of Rs. 323 million in 1H 2024. At company level, SLT delivered strong results with 1H PAT of Rs. 2.6 billion, up 873% from Rs. 272 million in the previous year, while Mobitel achieved a significant turnaround with PAT of Rs. 1.1 billion compared to a loss of Rs. 1.1 billion in 1H 2024, delivering strong financial momentum.

Commenting on the notable performance, Chairman, SLT Group and turnaround specialist Dr. Mothilal de Silva said, “The SLT Group’s solid half-year performance, compared to a loss in the previous year, demonstrates the organization’s resilience and effective execution. The progress reflects the impact of renewed strategic direction and sharper governance that has taken root throughout the Group. Our sustained profitability and discipline positions SLT to contribute meaningfully to national development and deliver strong value to all stakeholders, in addition to being a key enabler of Sri Lanka’s digital economy.”

Profitability momentum builds

In Q2 2025, the Group achieved a turnaround in operating profit growth of 148% compared to the previous year, with SLT company level showing 61% growth and Mobitel delivering an extraordinary improvement with operating profits increasing approximately 14050%, building on the substantial turnaround from the previous year’s performance.

SLT Group posted a revenue growth of 2.6% at Rs. 27.3 billion for Q2 2025, and at SLT company level Rs. 17.7 billion, maintaining a similar steady increase of 2.5% YoY. Overall, the quarterly revenues were primarily driven by Mobitel’s strong financials with a growth of 6.4%.

Targeted Spending & Efficiency

For Q2 2025, the Group’s comprehensive cost optimization initiatives yielded significant results, with overall direct costs declining 13.5% compared to the previous year. SLT achieved similar cost reductions of 10.3%, while Mobitel reduced direct costs by 4%.

Quarterly sales and marketing expenses at the Group level increased YoY by  6.2%, primarily driven due to SLT’s investments in market expansion, which saw a 17% increase in marketing spend. However, this was partially offset as a result of Mobitel’s  9.1% reduction in marketing costs. Administrative expenses rose 7.8% at the Group level, mainly attributed to increases in SLT and Mobitel.

During the reported quarter, interest expenses of the overall Group decreased significantly. Group  finance cost has declined 18.9%, primarily due to SLT’s 31% reduction in interest costs as borrowings have been lessened. However, Mobitel’s interest costs increased 23.5% due to short-term project financing and working capital requirements.

Janaka Abeysinghe, SLT Group, Chief Executive Officer, explained, “Our 1H 2025 results are due to the successful execution of SLT and Mobitel fuelling the Group’s strong consolidated position. The increase in operating profits, driven primarily through cost optimization initiatives, proves operational discipline. We continue to invest in network infrastructure and digital innovation, staying focused on driving sustainable growth and maintaining a leadership position in the telecommunications sector. These results and our cutting-edge connectivity solutions power Sri Lanka’s digital future.”

Mobitel has continued to demonstrate strong operational and financial performance. The company’s strategic focus on data services and network quality improvements has translated into sustained revenue growth and improved market positioning.

Sudharshana Geeganage, Mobitel Chief Operating Officer, added, “Mobitel’s successful transition from Rs. 1.1 billion losses in first half 2024 to Rs. 1.1 billion of net profit in first half 2025 illustrates the effectiveness of our strategic initiatives and improved market positioning. With a contribution of Rs. 1.6 billion to the Group’s overall revenue growth, we have successfully leveraged enhanced network capabilities and data services to capitalise on market opportunities while sustaining operational efficiency. The strong momentum positions Mobitel to continue leading Sri Lanka’s technological advancement.”