By: Azee Securities Private Limited
In our today’s morning report, we have presented the financial result of Pakistan Telecommunication Company Limited (PTC) for the 9MCY15 in detail.
Profitability drop by 9% PTCL on standalone basis witnessed a decline in earnings as profit after taxation reduces by 9% in its net earnings. The company posted an earnings of Rs 7.94 billion (EPS: Rs 1.56) as compared to Rs 8.74 billion (EPS: Rs 1.71) in 9MCY14. This is primarily due to decline in international incoming rates and lower fixed line segment penetration.
Topline down by 7% Net revenue drop by 7% to Rs 58.12 billion from Rs 62.56 billion in 9MCY14 due to lower revue from wireless and reduction in international incoming rates mainly due to ICH deregulation. However, PTCL’s Broadband services remained the leading business segment showing steady growth in revenues and subscribers- both in DSL (wireline) and EVO (wireless). The DSL customer base increased to 1.56 million subscribers. Cost of services relatively lower decline by 3% to Rs 40.36 billion mainly due to lower salaries expenses. Gross profit down by 15% to Rs 17.75 billion versus Rs 20.92 billion in 9MCY14.
Other income up by 9% Other income of the company up by 9% to reach at Rs 3,956 million in 9MCY15 against Rs 3,635 million in 9MCY14. This is primarily due to gain on disposal of available for sale investments and gain on disposal of property.