Sri Lanka Telecom : Interim Report Q2 2023

Sri Lanka Telecom PLC

Interim Condensed Consolidated Financial Statements

For the Quarter ended

30 June 2023

Sri Lanka Telecom PLC

Company Registration No. PQ 7

Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income

(All amounts in LKR Millions )
	Group
	Apr-Jun
	2023	2022
	(Reviewed)	(Reviewed)
Revenue	26,173	26,936
Direct costs	(16,743)	(15,916)
Gross Profit	9,430	11,020
Sales and marketing costs	(2,798)	(2,495)
Administrative costs	(6,388)	(5,160)
Operating profit	244	3,365
Other income	311	235
Dividend Income from subsidiaries
- and associates	-	-
Interest expenses and finance cost	(3,392)	(782)
Foreign exchange gain/ (loss)	224	135
Interest income	314	770
Share of profit / (loss) from equity
- accounted investee	5	22
Profit / (loss) before tax	(2,294)	3,745
Income tax expenses / (reversal)	178	(1,785)
Profit / (loss) for the Period	(2,116)	1,960
Other comprehensive income
Net change in fair value financial assets	(1)	-
Defined benefit plan actuarial gain/ (loss)	43	(13)
Tax on other comprehensive income	18	3
Other comprehensive income for the period
(net of tax)	60	(10)
Total Comprehensive Income for the Period	(2,056)	1,950
Profit /(loss) Attributable to :
Owners of the company	(2,118)	1,959
Non-controlling interest	2	1
	(2,116)	1,960
Total Comprehensive Income attributable to:
Owners of the company	(2,058)	1,949
Non-controlling interest	2	1
	(2,056)	1,950
Earnings per share
- Basic (Rs.)	(1.17)	1.09

Company

Apr-Jun

2023	2022
(Reviewed)	(Reviewed)
17,085	16,685
(10,078)	(10,132)
7,007	6,553
(1,411)	(1,440)
(4,685)	(4,209)
911	904
329	239
-	2,185
(3,045)	(447)
(27)	2,274
273	428
	-
5	22
(1,554)	5,605
527	(1,382)
(1,027)	4,223
-	-
44	(13)
(13)	4
31	(9)
(996)	4,214
(1,027)	4,223
-	-
(1,027)	4,223

1. 4,214

-

-

1. 4,214

(0.57)

2.34

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Group

Jan - Jun

2023	2022
(Reviewed)	(Reviewed)
52,727	52,937
(32,628)	(30,678)
20,099	22,259
(5,597)	(5,189)
(12,160)	(10,470)
2,342	6,600
1,070	809
-	-
(5,615)	(1,514)
632	(70)
867	1,280
-	95
(704)	7,200
(455)	(2,575)
(1,159)	4,625

1. -

34985

1. (22)

27463

1. 4,688

(1,162)

4,621

34

(1,159) 4,625

1. 4,684

34

1. 4,688
   (0.64) 2.56

Company

Jan - Jun

2023	2022
(Reviewed)	(Reviewed)
34,645	32,551
(19,922)	(19,353)
14,723	13,198
(2,693)	(2,799)
(9,146)	(8,364)
2,884	2,035
1,147	529

• 2,185
  (4,996)(930)

1. 5,536

581688

-

95

1. 10,138
   318 (1,798)

1. 8,340

-

-

34884

1. (20)

24464

1. 8,404

1. 8,340

-

-

1. 8,340

1. 8,404

-

-

1. 8,404
   (0.22) 4.62

Sri Lanka Telecom PLC

Company Registration No. PQ 7

Interim Condensed Consolidated Statement of Financial Position

(All amounts in LKR Millions )
	Group			Company
	30 Jun 2023		31 Dec 2022		30 Jun 2023	31 Dec 2022
	(Reviewed)		(Audited)		(Reviewed)	(Audited)
Assets
Non-Current Assets
Property,plant and equipment	170,930		164,916		132,984	127,061
Right-of-use assets	6,363		6,899		1,075	613
Intangible assets and goodwill	8,348		7,876		3,235	3,643
Investments in subsidiaries	-		-		14,431	14,431
Investments in associates	439		439		439	439
Deferred tax assets	211		177		-	-
Investments In equity Shares	2		2		-	-
Contract assets	1,336		1,504		322	313
Other receivables	3,505		3,320		3,490	3,295
Total Non-current Assets	191,134		185,133		155,976	149,795
Current Assets
Inventories	4,199		3,283		3,143	2,405
Trade and other receivables	34,009		32,533		22,817	23,677
Current tax receivables	18		20		-	-
Contract assets	1,560		1,470		129	122
Other investments	1,442		3,995		1,322	3,976
Cash and cash equivalents	12,405		14,150		5,084	6,051
Total Current Assets	53,633		55,451		32,495	36,231
Total Assets	244,767		240,584		188,471	186,026
Equity and Liabilities
Equity
Stated capital	18,049		18,049		18,049	18,049
Insurance reserve	300		300		300	300
Retained earnings	72,688		74,024		50,589	51,197
Equity attributable to equity share - holders
of the company	91,037		92,373		68,938	69,546
Non controlling Interest	118		115		-	-
Total Equity	91,155		92,488		68,938	69,546
Non Current Liabilities
Borrowings	37,844		30,332		37,854	30,332
Vendor financing	14,377		13,057		14,377	13,057
Lease liability	4,332		4,835		569	428
Contract liabilities	1,741		1,483		1,741	1,483
Deferred income	1,353		1,469		1,353	1,469
Deferred tax liabilities	9,073		9,066		7,789	8,002
Employee benefits	5,731		5,733		4,810	4,846
Trade and other payables	7,141		8,696		4,273	7,804
Total Non Current Liabilities	81,592		74,671		72,766	67,421
Current Liabilities
Borrowings	21,307		16,963		15,210	13,310
Vendor financing	3,715		4,269		3,278	1,745
Lease liability	2,549		2,661		565	227
Contract liabilities	1,080		972		792	716
Deferred income	3,934		3,852		330	221
Current tax liabilities	767		1,124		158	441
Deferred tax liabilities	12		12		-	-
Trade and other payables	38,656		43,572		26,434	32,399
Total Current Liabilities	72,020		73,425		46,767	49,059
Total Liabilities	153,612		148,096		119,533	116,480
Total Equity and Liabilities	244,767		240,584		188,471	186,026

I certify that these financial statements have been prepared in compliance with the requirements of the Companies Act No.07 of 2007.

Signed

Sanjeewa Samaranayake

Group Chief Financial Officer

The Board of Directors is responsible for these financial statements.These financial statements were approved by the Board of Directors on 11 August 2023.

Signed for and behalf of the Board.

Signed	Signed
Reyaz Mihular	K.A.Vimalenthirarajah
Chairman	Director

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Sri Lanka Telecom PLC

Company Registration No. PQ 7

Interim Condensed Consolidated Statement of Changes In Equity

For the six months ended 30 June 2023

(All amounts in LKR Millions )
Group		Attributable to owners of the Company
					Non
	Stated	Insurance	Retained	Total	controlling	Total
	capital	reserve	earnings		interest	equity
Balance as at 1 January 2022	18,049	1,105	74,714	93,868	108	93,976
Adjustment for Surcharge Tax levied under the
Surcharge Tax Act No.14 of 2022			(2,289)	(2,289)	-	(2,289)
Adjusted balances as at 01 January 2022	18,049	1,105	72,425	91,579	108	91,687
Non Controlling interest	-	-	-	-	7	7
Total comprehensive income for the year
Net profit for the year	-	-	4,765	4,765	-	4,765
Other comprehensive income / (expense)
Defined benefit plan actuarial loss,net of tax	-	-	(325)	(325)	-	(325)
Total other comprehensive income for the year	-	-	(325)	(325)	-	(325)
Total comprehensive income for the year	-	-	4,440	4,440	-	4,440
Transactions with owners, recorded directly in equity
Contribution by and distribution to owners
Dividends to equity share holders	-	-	(3,646)	(3,646)	-	(3,646)
Insurance reserve
Transferred from insurance reserve	-	(805)	805	-	-	-
Balance as at 31 December 2022	18,049	300	74,024	92,373	115	92,488
Balance as at 1 January 2023	18,049	300	74,024	92,373	115	92,488
Non controlling interest	-	-	-	-	3	3
Total comprehensive income for period
Net loss for the period	-	-	(1,159)	(1,159)	-	(1,159)
Other comprehensive income /(expense)
Net change in fair value financial assets	-	-	(1)	(1)	-	(1)
Defined benefit plan actuarial gain,net of tax	-	-	275	275	-	275
Total other comprehensive income for period	-	-	274	274	-	274
Total comprehensive income for the period	-	-	(885)	(885)	-	(885)
Transactions with owners, recorded directly in equity
Contribution by and distribution to owners
Dividends to equity share holders	-	-	(451)	(451)	-	(451)
Balance as at 30 June 2023	18,049	300	72,688	91,037	118	91,155

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Sri Lanka Telecom PLC

Company Registration No. PQ 7

Interim Condensed Consolidated Statement of Changes In Equity

For the six months ended 30 June 2023

(All amounts in LKR Millions )
Company	Attributable to owners of the Company
	Stated	Insurance	Retained	Total
	capital	reserve	earnings
Balance as at 1 January 2022	18,049	1,105	46,518	65,672
Adjustment for Surcharge Tax levied under the
Surcharge Tax Act No.14 of 2022	-	-	(742)	(742)
Adjusted balances as at 01 January 2022	18,049	1,105	45,776	64,930
Total comprehensive income for the year
Net profit for the year	-	-	8,463	8,463
Other comprehensive income / (expense)
Defined benefit plan actuarial loss,net of tax	-	-	(201)	(201)
Total other comprehensive income for the year	-	-	(201)	(201)
Total comprehensive income for the year	-	-	8,262	8,262
Transactions with owners,recorded directly in equity
Contribution by and distribution to owners
Dividends to equity share holders	-	-	(3,646)	(3,646)
Insurance reserve
Transferred from insurance reserve	-	(805)	805	-
Balance as at 31 December 2022	18,049	300	51,197	69,546
Balance as at 1 January 2023	18,049	300	51,197	69,546
Total comprehensive income for period
Net loss for the period	-	-	(401)	(401)
Other comprehensive income / (expense)
Defined benefit plan actuarial gain,net of tax	-	-	244	244
Total other comprehensive income for period	-	-	244	244
Total comprehensive income for the period	-	-	(157)	(157)
Transactions with owners,recorded directly in equity
Contribution by and distribution to owners
Dividends to equity share holders	-	-	(451)	(451)
Balance as at 30 June 2023	18,049	300	50,589	68,938

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