By: Azee Securities Private Limited
In our today’s morning report, we have presented the financial result of Pakistan Telecommunication Company Limited (PTCL) for the 1QCY15 in detail.
Earnings decline by 26% PTCL on standalone basis witnessed a decline of 26.4% in its net earnings. The company posted an earnings of Rs 2.47 billion (EPS: Rs 0.49) as compared to Rs 3.36 billion (EPS: Rs 0.66) in 1QFY14. This is primarily due to lower international incoming minutes, decreasing incoming rates and lower other income.
Topline down by 9% Net revenue fall by 9% to Rs 19.25 billion from Rs 21.11 billion in 1QFY14 due to lower international incoming minutes and reduction in termination rates for incoming calls. However PTCL continues it growth journey in Broadband services – both in DSL (wireline) and EVO (wireless). The DSL customer base increased by 8% to 1.47 million subscribers. Cost of services relatively lower decline by 3.1% to Rs 13.11 billion mainly due to lower salaries expenses. Gross profit decreases by 19.1% to Rs 6.13 billion versus Rs 7.58 billion in 1QCY14.
Other income down by 27% Other income of the company decline by 27% to reach at Rs 803 million in 1QFY15 against Rs 1,091 million in 1QFY14. This is primarily due to lower profit on deposits and reduction in cash balance along with no dividend income from Ufone.