Upcoming Dividend • Jun 15
Upcoming dividend of LK₨0.75 per share Eligible shareholders must have bought the stock before 22 June 2026. Payment date: 10 July 2026. Payout ratio is a comfortable 12% and this is well supported by cash flows. Trailing yield: 0.9%. Lower than top quartile of Sri Lankan dividend payers (4.2%). Lower than average of industry peers (4.8%). Reported Earnings • May 15
First quarter 2026 earnings released: EPS: LK₨1.70 (vs LK₨1.11 in 1Q 2025) First quarter 2026 results: EPS: LK₨1.70 (up from LK₨1.11 in 1Q 2025). Revenue: LK₨30.8b (up 11% from 1Q 2025). Net income: LK₨3.07b (up 53% from 1Q 2025). Profit margin: 10.0% (up from 7.2% in 1Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 93% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Declared Dividend • Mar 18
Dividend increased to LK₨0.75 Dividend of LK₨0.75 is 200% higher than last year. Ex-date: 22nd June 2026 Payment date: 10th July 2026 Dividend yield will be 0.9%, which is lower than the industry average of 4.7%. Payout Ratios Payout ratio: 5%. Cash payout ratio: 2%. Announcement • Mar 17
Sri Lanka Telecom PLC announces Annual dividend, payable on July 10, 2026 Sri Lanka Telecom PLC announced Annual dividend of LKR 0.7500 per share payable on July 10, 2026, ex-date on June 22, 2026 and record date on June 23, 2026. Announcement • Mar 16
Sri Lanka Telecom PLC, Annual General Meeting, Jun 19, 2026 Sri Lanka Telecom PLC, Annual General Meeting, Jun 19, 2026, at 10:00 Sri Lanka Standard Time. Location: at the liberty ballroom, ramada hotel, no. 30, sir mohamed macan markar mawatha, colombo 03 Sri Lanka Buy Or Sell Opportunity • Feb 05
Now 20% undervalued Over the last 90 days, the stock has risen 50% to LK₨102. The fair value is estimated to be LK₨128, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. Buy Or Sell Opportunity • Jan 09
Now 21% undervalued Over the last 90 days, the stock has risen 36% to LK₨90.00. The fair value is estimated to be LK₨113, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. New Risk • Dec 24
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Sri Lankan stocks, typically moving 7.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.5x net interest cover). Earnings have declined by 28% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (7.3% average weekly change). Buy Or Sell Opportunity • Dec 15
Now 22% undervalued Over the last 90 days, the stock has risen 29% to LK₨84.20. The fair value is estimated to be LK₨108, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. Reported Earnings • Nov 17
Third quarter 2025 earnings released: EPS: LK₨1.21 (vs LK₨0.61 in 3Q 2024) Third quarter 2025 results: EPS: LK₨1.21 (up from LK₨0.61 in 3Q 2024). Revenue: LK₨29.5b (up 3.3% from 3Q 2024). Net income: LK₨2.19b (up 100% from 3Q 2024). Profit margin: 7.4% (up from 3.8% in 3Q 2024). Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Nov 10
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to LK₨79.10, the stock trades at a trailing P/E ratio of 18.5x. Average trailing P/E is 16x in the Telecom industry in Asia. Total returns to shareholders of 25% over the past three years. Reported Earnings • Aug 16
Second quarter 2025 earnings released: EPS: LK₨1.26 (vs LK₨0.27 loss in 2Q 2024) Second quarter 2025 results: EPS: LK₨1.26 (up from LK₨0.27 loss in 2Q 2024). Revenue: LK₨27.3b (up 2.6% from 2Q 2024). Net income: LK₨2.27b (up LK₨2.75b from 2Q 2024). Profit margin: 8.3% (up from net loss in 2Q 2024). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Upcoming Dividend • Jun 20
Upcoming dividend of LK₨0.25 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 17 July 2025. Payout ratio is a comfortable 9.2% and this is well supported by cash flows. Trailing yield: 0.4%. Lower than top quartile of Sri Lankan dividend payers (5.4%). Lower than average of industry peers (5.1%). Reported Earnings • May 10
First quarter 2025 earnings released: EPS: LK₨1.11 (vs LK₨0.09 in 1Q 2024) First quarter 2025 results: EPS: LK₨1.11 (up from LK₨0.09 in 1Q 2024). Revenue: LK₨27.9b (up 3.4% from 1Q 2024). Net income: LK₨2.00b (up LK₨1.85b from 1Q 2024). Profit margin: 7.2% (up from 0.6% in 1Q 2024). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 88 percentage points per year, which is a significant difference in performance. Announcement • Mar 27
Sri Lanka Telecom PLC announces Annual dividend, payable on July 17, 2025 Sri Lanka Telecom PLC announced Annual dividend of LKR 0.2500 per share payable on July 17, 2025, ex-date on June 27, 2025 and record date on June 30, 2025. Announcement • Mar 25
Sri Lanka Telecom PLC, Annual General Meeting, Jun 26, 2025 Sri Lanka Telecom PLC, Annual General Meeting, Jun 26, 2025. Location: sri lanka foundation institute, no. 100, sri lanka padanam, mawatha, independence square, colombo 07, Sri Lanka Reported Earnings • Mar 01
Full year 2024 earnings released: EPS: LK₨1.73 (vs LK₨2.18 loss in FY 2023) Full year 2024 results: EPS: LK₨1.73 (up from LK₨2.18 loss in FY 2023). Revenue: LK₨111.1b (up 4.4% from FY 2023). Net income: LK₨3.12b (up LK₨7.04b from FY 2023). Profit margin: 2.8% (up from net loss in FY 2023). The move to profitability was primarily driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 106 percentage points per year, which is a significant difference in performance. Reported Earnings • Nov 14
Third quarter 2024 earnings released: EPS: LK₨0.61 (vs LK₨0.86 loss in 3Q 2023) Third quarter 2024 results: EPS: LK₨0.61 (up from LK₨0.86 loss in 3Q 2023). Revenue: LK₨28.5b (up 3.0% from 3Q 2023). Net income: LK₨1.09b (up LK₨2.64b from 3Q 2023). Profit margin: 3.8% (up from net loss in 3Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 124 percentage points per year, which is a significant difference in performance. Announcement • Nov 09
Sri Lanka Telecom plc Appoints Mothilal De Silva as Independent, Non-Executive Director Sri Lanka Telecom PLC announced the appointment of Dr. Mothilal De Silva as Independent, Non-Executive Director of the company, effective from 04 November 2024. New Risk • Sep 24
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Sri Lankan stocks, typically moving 4.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.6x net interest cover). Earnings have declined by 31% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (4.8% average weekly change). Reported Earnings • Aug 16
Second quarter 2024 earnings released: LK₨0.27 loss per share (vs LK₨1.17 loss in 2Q 2023) Second quarter 2024 results: LK₨0.27 loss per share (improved from LK₨1.17 loss in 2Q 2023). Revenue: LK₨26.6b (up 1.7% from 2Q 2023). Net loss: LK₨479.0m (loss narrowed 77% from 2Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 121 percentage points per year, which is a significant difference in performance. Reported Earnings • May 17
First quarter 2024 earnings released: EPS: LK₨0.09 (vs LK₨0.53 in 1Q 2023) First quarter 2024 results: EPS: LK₨0.09 (down from LK₨0.53 in 1Q 2023). Revenue: LK₨26.9b (up 1.4% from 1Q 2023). Net income: LK₨154.0m (down 84% from 1Q 2023). Profit margin: 0.6% (down from 3.6% in 1Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 118 percentage points per year, which is a significant difference in performance. Reported Earnings • Apr 22
Full year 2023 earnings released: LK₨2.18 loss per share (vs LK₨2.64 profit in FY 2022) Full year 2023 results: LK₨2.18 loss per share (down from LK₨2.64 profit in FY 2022). Revenue: LK₨106.4b (down 1.2% from FY 2022). Net loss: LK₨3.93b (down 183% from profit in FY 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 100 percentage points per year, which is a significant difference in performance. Announcement • Apr 21
Sri Lanka Telecom PLC, Annual General Meeting, May 14, 2024 Sri Lanka Telecom PLC, Annual General Meeting, May 14, 2024, at 10:00 Sri Lanka Standard Time. Location: Main Hall, Bandaranaike Memorial International Conference Hall, ("BMICH") Bauddaloka Mawatha, Colombo 07 Sri Lanka Agenda: To consider To receive and consider the Annual Report of the Board of Directors on the Affairs of the Company and the Statement of Accounts for the year ended 31 December 2023 with the Report of the Auditors thereon; To elect as a Director, Mr A K D D D Arandara, who retires in terms of Articles 97 of the Articles of Association; To elect as a Director, Prof K M Liyanage, who retires in terms of Articles 97 of the Articles of Association; To elect as a Director, Dr K A S Keeragala, who retires in terms of Articles 97 of the Articles of Association; To elect as a Director, Dr D M I S Dassanayake, who retires in terms of Articles 97 of the Articles of Association; To elect as a Director, Mr M M C P Mohottigedara, who retires in terms of Articles 97 of the Articles of Association; and to discuss other matters. Reported Earnings • Mar 03
Full year 2023 earnings released: LK₨2.17 loss per share (vs LK₨2.64 profit in FY 2022) Full year 2023 results: LK₨2.17 loss per share (down from LK₨2.64 profit in FY 2022). Revenue: LK₨106.4b (down 1.2% from FY 2022). Net loss: LK₨3.93b (down 183% from profit in FY 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 104 percentage points per year, which is a significant difference in performance. Board Change • Feb 01
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 5 non-independent directors. Independent Non–Executive Director VU Kumar Vivekananda was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Jan 31
Sri Lanka Telecom PLC Announces Changes to its Board Sri Lanka Telecom PLC announced that Chairman and Independent Non-Executive Director Reyaz Mihular tendered his resignation with effect from 29 January 2024. The five other Directors also tendered their resignation. The Directors are Rohan Fernando (former SLT Chairman), Lalith Seneviratne, Ranjith Rubasinghe, Mohan Weerakoon, and Treasury representative K.A. Vimalenthirarajh. The former SLT Chairman Fernando also stepped down as Chairman from SLT Subsidiary eChanneling PLC. On 26 January, Secretary to President Saman Ekanayake, under the directive of President Wickremesinghe, announced the appointment of a new set of Board of Directors to SLT. The new members are; K.D.D.D. Arandara - Chairman, Dr. K.A.S. Keeragala - Member, Attorney-at-Law Dinesh Vidanapathirana - Member, Prof. K.M. Liyanage - Member, Dr. D.M.I.S. Dassanayake - Member and Chathura Mohottigedara - Treasury Representative. Reported Earnings • Nov 17
Third quarter 2023 earnings released: LK₨0.86 loss per share (vs LK₨0.79 profit in 3Q 2022) Third quarter 2023 results: LK₨0.86 loss per share (down from LK₨0.79 profit in 3Q 2022). Revenue: LK₨27.7b (up 3.9% from 3Q 2022). Net loss: LK₨1.54b (down 208% from profit in 3Q 2022). Over the last 3 years on average, earnings per share has fallen by 44% per year but the company’s share price has increased by 46% per year, which means it is well ahead of earnings. New Risk • Nov 15
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Sri Lankan stocks, typically moving 5.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.3x net interest cover). Minor Risk Share price has been volatile over the past 3 months (5.7% average weekly change). New Risk • Aug 12
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.3x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 12
Second quarter 2023 earnings released: LK₨1.17 loss per share (vs LK₨1.09 profit in 2Q 2022) Second quarter 2023 results: LK₨1.17 loss per share (down from LK₨1.09 profit in 2Q 2022). Revenue: LK₨26.2b (down 2.8% from 2Q 2022). Net loss: LK₨2.12b (down 208% from profit in 2Q 2022). Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 45% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jun 21
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to LK₨104, the stock trades at a trailing P/E ratio of 61.5x. Average trailing P/E is 18x in the Telecom industry in Asia. Total returns to shareholders of 327% over the past three years. Announcement • May 13
Sri Lanka Telecom PLC, Annual General Meeting, May 11, 2023 Sri Lanka Telecom PLC, Annual General Meeting, May 11, 2023, at 10:00 Sri Lanka Standard Time. Location: Bandaranaike Memorial International Conference Hall Bauddhaloka Mawatha Colombo 07 Sri Lanka Agenda: To receive and consider the financial statements of the Company for the year ended December 31, 2022, and the report of the auditors thereon; to consider dividend; to consider election of directors and their remuneration; to re-appoint Messrs Ernst & Young, Chartered Accountants as Auditors for the ensuing year and to authorize the Directors to determine their remuneration; to authorize the Directors to determine and make donations to charities; and to transact such other business. Upcoming Dividend • May 06
Upcoming dividend of LK₨0.25 per share at 0.3% yield Eligible shareholders must have bought the stock before 12 May 2023. Payment date: 01 June 2023. Payout ratio is a comfortable 9.5% but the company is not cash flow positive. Trailing yield: 0.3%. Lower than top quartile of Sri Lankan dividend payers (8.6%). Lower than average of industry peers (3.9%). Reported Earnings • Apr 23
Full year 2022 earnings released: EPS: LK₨2.64 (vs LK₨6.73 in FY 2021) Full year 2022 results: EPS: LK₨2.64 (down from LK₨6.73 in FY 2021). Revenue: LK₨107.7b (up 5.2% from FY 2021). Net income: LK₨4.76b (down 61% from FY 2021). Profit margin: 4.4% (down from 12% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 62% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Mar 21
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to LK₨94.80, the stock trades at a trailing P/E ratio of 36x. Average trailing P/E is 16x in the Telecom industry in Asia. Total returns to shareholders of 399% over the past three years. Valuation Update With 7 Day Price Move • Feb 24
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to LK₨86.30, the stock trades at a trailing P/E ratio of 32.7x. Average trailing P/E is 17x in the Telecom industry in Asia. Total returns to shareholders of 241% over the past three years. Reported Earnings • Feb 18
Full year 2022 earnings released: EPS: LK₨2.64 (vs LK₨6.73 in FY 2021) Full year 2022 results: EPS: LK₨2.64 (down from LK₨6.73 in FY 2021). Revenue: LK₨107.7b (up 5.2% from FY 2021). Net income: LK₨4.76b (down 61% from FY 2021). Profit margin: 4.4% (down from 12% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 34% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Dec 27
Investor sentiment improved over the past week After last week's 17% share price gain to LK₨71.00, the stock trades at a trailing P/E ratio of 14.2x. Average trailing P/E is 17x in the Telecom industry in Asia. Total returns to shareholders of 158% over the past three years. Announcement • Dec 13
Sri Lanka Telecom PLC Appoints Suren Amarasekera to the Board Suren Amarasekera has been appointed to the board of Sri Lanka Telecom PLC, with effect from December 9, 2022. Amarasekera has expertise in the telecom industry spanning 29 years. He has been associated with globally renowned telcos: Singapore Telecommunications Ltd. (SingTel) in Singapore and Sri Lanka, Sri Lanka Telecom's Mobitel, Maxis Berhad in Malaysia, Aircel Ltd. in India and Ncell Axiata in Nepal. Amarasekera's strong cultural adaptation skills have been greatly honed with in-depth multi-market work exposure gained during multiyear stints in Singapore, Sri Lanka, Malaysia, India and Nepal. He has provided advisory services in ICT and digital transformation (Tactile Internet, 5G/6G and SuperApps) since 2020. During 2017-2019, he was Strategic Projects Director, South Asia Region with Axiata Group Berhad. He was appointed as MD/CEO of Ncell Axiata in July 2017. He widened Ncell's market leadership and led the digital transformation that further elevated the company's position with USD 575 million annual turnover and an EBITDA margin of 60%. From 2014-2017, Amarasekera served as Chief Enterprise Officer of Aircel Ltd, with responsibility for 4G LTE services, enterprise, wholesale and carrier businesses and notably facilitated the sale of 20 MHz of Aircel's 4G spectrum in eight circles for approximately USD 600 million as a debt-reduction mechanism. He served as EVP and Joint COO of Maxis Berhad, Malaysia from 2011-2013 and guided the company to be the first to commercially launch 4G in Malaysia and had overall P&L management with annual turnover of MYR 9 billion and an EBITDA margin of 50%. He served as a Board Member of the Bridge Alliance, Singapore, serving over 750 million customers. With the latest appointments, the board of directors of Sri Lanka Telecom PLC comprises Chairman Rohan Fernando, L. Seneviratne, C.C. Beng, L. Paratz, M. Weerakoon, R. Rubasinghe, U.K.K. Vivekananda, V.K. Arulampalam and S.J. Amarasekera. Board Change • Nov 16
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Non-Executive Director K. Vimalenthirarajah was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 10
Third quarter 2022 earnings released: EPS: LK₨0.79 (vs LK₨1.79 in 3Q 2021) Third quarter 2022 results: EPS: LK₨0.79 (down from LK₨1.79 in 3Q 2021). Revenue: LK₨26.7b (flat on 3Q 2021). Net income: LK₨1.43b (down 56% from 3Q 2021). Profit margin: 5.4% (down from 12% in 3Q 2021). Over the last 3 years on average, earnings per share has increased by 22% per year and the company’s share price has also increased by 22% per year. Valuation Update With 7 Day Price Move • Oct 06
Investor sentiment improved over the past week After last week's 16% share price gain to LK₨50.80, the stock trades at a trailing P/E ratio of 8.5x. Average trailing P/E is 17x in the Telecom industry in Asia. Total returns to shareholders of 97% over the past three years. Valuation Update With 7 Day Price Move • Aug 22
Investor sentiment improved over the past week After last week's 78% share price gain to LK₨59.10, the stock trades at a trailing P/E ratio of 9.9x. Average trailing P/E is 18x in the Telecom industry in Asia. Total returns to shareholders of 137% over the past three years. Reported Earnings • Aug 09
Second quarter 2022 earnings released: EPS: LK₨1.09 (vs LK₨2.11 in 2Q 2021) Second quarter 2022 results: EPS: LK₨1.09 (down from LK₨2.11 in 2Q 2021). Revenue: LK₨26.9b (up 6.5% from 2Q 2021). Net income: LK₨1.96b (down 49% from 2Q 2021). Profit margin: 7.3% (down from 15% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 04
Investor sentiment improved over the past week After last week's 16% share price gain to LK₨36.60, the stock trades at a trailing P/E ratio of 5.2x. Average trailing P/E is 19x in the Telecom industry in Asia. Total returns to shareholders of 49% over the past three years. Upcoming Dividend • Jun 14
Upcoming dividend of LK₨2.02 per share Eligible shareholders must have bought the stock before 21 June 2022. Payment date: 11 July 2022. Payout ratio is a comfortable 29% and this is well supported by cash flows. Trailing yield: 6.3%. Lower than top quartile of Sri Lankan dividend payers (8.9%). Higher than average of industry peers (4.1%). Reported Earnings • May 15
First quarter 2022 earnings released: EPS: LK₨1.47 (vs LK₨1.19 in 1Q 2021) First quarter 2022 results: EPS: LK₨1.47 (up from LK₨1.19 in 1Q 2021). Revenue: LK₨26.0b (up 5.4% from 1Q 2021). Net income: LK₨2.66b (up 24% from 1Q 2021). Profit margin: 10% (up from 8.7% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • May 05
Upcoming dividend of LK₨2.02 per share Eligible shareholders must have bought the stock before 12 May 2022. Payment date: 02 June 2022. Payout ratio is a comfortable 30% and this is well supported by cash flows. Trailing yield: 5.2%. Lower than top quartile of Sri Lankan dividend payers (8.8%). Higher than average of industry peers (3.8%). Board Change • Apr 27
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Non-Executive Director K. Vimalenthirarajah was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 21
Full year 2021 earnings released: EPS: LK₨6.73 (vs LK₨4.36 in FY 2020) Full year 2021 results: EPS: LK₨6.73 (up from LK₨4.36 in FY 2020). Revenue: LK₨102.3b (up 12% from FY 2020). Net income: LK₨12.2b (up 54% from FY 2020). Profit margin: 12% (up from 8.6% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 31
Investor sentiment deteriorated over the past week After last week's 19% share price decline to LK₨34.90, the stock trades at a trailing P/E ratio of 5.2x. Average trailing P/E is 18x in the Telecom industry in Asia. Total returns to shareholders of 65% over the past three years. Valuation Update With 7 Day Price Move • Feb 24
Investor sentiment deteriorated over the past week After last week's 23% share price decline to LK₨40.00, the stock trades at a trailing P/E ratio of 5.9x. Average trailing P/E is 19x in the Telecom industry in Asia. Total returns to shareholders of 95% over the past three years. Reported Earnings • Feb 18
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: LK₨6.73 (up from LK₨4.36 in FY 2020). Revenue: LK₨102.3b (up 12% from FY 2020). Net income: LK₨12.2b (up 54% from FY 2020). Profit margin: 12% (up from 8.6% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has increased by 35% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Feb 01
Investor sentiment improved over the past week After last week's 17% share price gain to LK₨59.90, the stock trades at a trailing P/E ratio of 10.5x. Average trailing P/E is 18x in the Telecom industry in Asia. Total returns to shareholders of 197% over the past three years. Announcement • Jan 26
Tempest Two (Pvt) Ltd completed the acquisition of SLT Campus (Private) Limited from Sri Lanka Telecom PLC (COSE:SLTL.N0000). Tempest Two (Pvt) Ltd entered into share sale and purchase agreement to acquire SLT Campus (Private) Limited from Sri Lanka Telecom PLC (COSE:SLTL.N0000) for LKR 410 million on December 14, 2021. The is subject to terms and conditions set forth in the SSPA.
Tempest Two (Pvt) Ltd completed the acquisition of SLT Campus (Private) Limited from Sri Lanka Telecom PLC (COSE:SLTL.N0000) on January 25, 2022. Announcement • Dec 16
Tempest Two (Pvt) Ltd entered into share sale and purchase agreement to acquire SLT Campus (Private) Limited from Sri Lanka Telecom PLC (COSE:SLTL.N0000) for LKR 410 million Tempest Two (Pvt) Ltd entered into share sale and purchase agreement to acquire SLT Campus (Private) Limited from Sri Lanka Telecom PLC (COSE:SLTL.N0000) for LKR 410 million on December 14, 2021. The is subject to terms and conditions set forth in the SSPA. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS LK₨1.79 (vs LK₨1.20 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: LK₨26.7b (up 16% from 3Q 2020). Net income: LK₨3.23b (up 49% from 3Q 2020). Profit margin: 12% (up from 9.4% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 24% per year whereas the company’s share price has increased by 20% per year. Valuation Update With 7 Day Price Move • Sep 10
Investor sentiment improved over the past week After last week's 18% share price gain to LK₨38.30, the stock trades at a trailing P/E ratio of 7.5x. Average trailing P/E is 23x in the Telecom industry in Asia. Total returns to shareholders of 98% over the past three years. Reported Earnings • Aug 03
Second quarter 2021 earnings released: EPS LK₨2.11 (vs LK₨1.50 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: LK₨25.3b (up 15% from 2Q 2020). Net income: LK₨3.81b (up 41% from 2Q 2020). Profit margin: 15% (up from 12% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 14
First quarter 2021 earnings released: EPS LK₨1.19 (vs LK₨1.04 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: LK₨24.7b (up 11% from 1Q 2020). Net income: LK₨2.14b (up 14% from 1Q 2020). Profit margin: 8.7% (up from 8.5% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Apr 20
Upcoming dividend of LK₨1.49 per share Eligible shareholders must have bought the stock before 27 April 2021. Payment date: 17 May 2021. Trailing yield: 4.3%. Lower than top quartile of Sri Lankan dividend payers (4.7%). Higher than average of industry peers (3.7%). Reported Earnings • Mar 31
Full year 2020 earnings released: EPS LK₨4.36 (vs LK₨3.50 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: LK₨91.1b (up 6.0% from FY 2019). Net income: LK₨7.88b (up 25% from FY 2019). Profit margin: 8.6% (up from 7.4% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Mar 10
New 90-day low: LK₨32.90 The company is down 4.0% from its price of LK₨34.40 on 10 December 2020. The Sri Lankan market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Telecom industry, which is up 8.0% over the same period. Reported Earnings • Feb 11
Full year 2020 earnings released: EPS LK₨4.36 (vs LK₨3.50 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: LK₨91.1b (up 6.0% from FY 2019). Net income: LK₨7.88b (up 25% from FY 2019). Profit margin: 8.6% (up from 7.4% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jan 15
Investor sentiment improved over the past week After last week's 17% share price gain to LK₨42.60, the stock is trading at a trailing P/E ratio of 9.5x, up from the previous P/E ratio of 8.1x. This compares to an average P/E of 21x in the Telecom industry in Asia. Total returns to shareholders over the past three years are 70%. Is New 90 Day High Low • Jan 06
New 90-day high: LK₨34.70 The company is up 12% from its price of LK₨31.00 on 08 October 2020. The Sri Lankan market is up 26% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Telecom industry, which is up 6.0% over the same period. Is New 90 Day High Low • Dec 07
New 90-day high: LK₨33.70 The company is up 13% from its price of LK₨29.90 on 08 September 2020. The Sri Lankan market is up 21% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Telecom industry, which is up 3.0% over the same period. Is New 90 Day High Low • Nov 04
New 90-day high: LK₨33.30 The company is up 16% from its price of LK₨28.80 on 06 August 2020. The Sri Lankan market is up 14% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Telecom industry, which is down 3.0% over the same period. Reported Earnings • Nov 03
Third quarter 2020 earnings released: EPS LK₨1.20 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: LK₨23.1b (up 8.4% from 3Q 2019). Net income: LK₨2.17b (up 44% from 3Q 2019). Profit margin: 9.4% (up from 7.0% in 3Q 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Sep 28
New 90-day high: LK₨31.70 The company is up 10.0% from its price of LK₨28.90 on 30 June 2020. The Sri Lankan market is up 14% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Telecom industry, which is down 3.0% over the same period. 
