By: Arif Habib Limited
PTC’s 2QCY15 EPS clocked in at PKR 0.48, up 242% QoQ, interim DPS of PKR 1.00 Pakistan Telecommunications Company (PTC) announced its 2QCY15 results on 15th July, 2015. The company recorded profit after tax of PKR 2,447mn (EPS: PKR 0.48), an improvement of 242% QoQ, while for 1HCY15, earnings registered at PKR 3,163mn (EPS: PKR 0.62) a 62% YoY decline. The company also announced an interim cash dividend of PKR 1.00/share, similar to last year.
- Sales recovered 2% QoQ during 2QCY15, however, it was an 11% YoY decline during 1H. The main reasons for decline in sales were suspension of the ICH arrangement (which was to significantly charge higher rates on incoming int’l calls/minutes through its network with 50% market share of its own), which resulted in lower LDI revenues, and a decline in Ufone revenues.
- Gross margins improved to 28.9% during 2Q from 28.2% in the previous quarter. During 1HCY15, margins fell drastically from 37.3% last year to 28.6%, due to suspension of the ICH arrangement in this period.
- The company increased efficiency, with reduced admin expenses and selling expenses (possibly a reduction in salaries due to VSS in 4QCY14).
- Finance costs fell by 27% QoQ due to slashing of policy rate by State Bank, while finance costs rose 90% YoY during 1HCY15, mainly due to PKR 12bn loan for 3G license acquisition.