PTCL's Q1-2010 Profit Down by 19 % as Revenue Falls
PTCL has reported its first quarter results which fell in profit by 19 percent, despite company’s strategy of developing new sources of income.
Company’s revenue fell to 13.9 billion rupees from 14.5 billion, down by 4 percent, in same quarter previous year.
Company reported a total of Rs. 2.10 billion profit after tax in the three months ended September 30, 2010 from 2.57 billion rupees, a year earlier.
PTCL reported an earning of Rs. 0.41 per share during the reported quarter compared to Rs. 0.50 earning per share during same period previous year.
PTCL said that revenues from PSTN, International Business and Carrier & Wholesale segments dropped while Broadband services (wire-line and wireless) showed promising growth in terms of revenues during the reported period.
PTCL in its quarterly financial report stated that overall operating expenses during first quarter increased by 9% compared to corresponding quarter last year. It said that the main reason for the higher expenses is the effect of increase in employees’ compensation.
Company wrote that the Cost of Services increased by 9% and the Administrative and General Expenses were higher by 5%. The Selling and Marketing Expenses increased by 21%.
In its report sent to stock exchange PTCL said that Ufone, PTCL’s wholly owned subsidiary, showed 16 percent growth in revenues and 92 percent growth in profits, during Q1 2010.
Download PTCL’s Q1-2010 financial report by clicking this link (PDF – 3.58 MB)
Following is Company’s Press Statement for the Q1 Results:
Pakistan Telecommunication Company Limited (PTCL) today announced its financial results for the first quarter ended 30th September 2010. The company has announced a net profit of Rs. 2.081 billion compared to Rs. 2.568 billion recorded in the same period last year .
During the last financial year, PTCL continued its strategy of developing new sources of income, on the Commercial side. In the financial year 2009-10, the growth momentum of PTCL remained strong in emerging segments of Broadband and Corporate Services. During the year, broadband footprint (wire line and wireless) expanded by more than 100% resulting in 172% increase in revenue from this market segment. For the period PTCL earned profit after tax of Rs. 9.294 billion which was 1.6% higher as compared with net profit of Rs. 9.151 billion for the last year.
PTCL group revenue during the year under review stood at Rs. 98.906 billion, showing a growth of 6.7% over last year. Of this, PTCL’s revenue was Rs. 57.175 billion compared to Rs. 59.239 billion for the preceding year.
In order to address diversified needs of the customer base, PTCL continued to introduce innovative products and services based on latest technology. PTCL remained the largest and fastest growing broadband service provider in Pakistan. During the period under review, the DSL broadband customer base registered an increase of 110% spread over 600 cities and towns with 85% market share.
During this period PTCL EVO- Rev-A 3.1 Mbps wireless broadband service based on 3G technology has revolutionized the internet experience in the country. In less than a year, EVO has become the country’s fast growing wireless broadband network with connectivity and roaming in over 100 cities across. PTCL also launched its EVDO Rev-B network which offers unparalleled internet speed of up to 9.3 Mbps. This achievement makes PTCL the first operator in the world to launch this service commercially in Pakistan.
Conscious efforts were made to further facilitate landline customers by expanding the spectrum of available services and packages. The geographical reach of popular packages was extended to benefit a broader customer base. PTCL further streamlined its pricing strategy to make it more customer focused by offering convenient payment plans.
Special promotions were launched on Independence Day, Ramadan, Hajj, Christmas, Eid and New Year. Off peak and Sunday rates were also introduced to encourage higher usage. Besides the already available Pakistan Plus and International Plus packages, regional packages for new areas and local call packages were introduced in certain cities. Mobile Bucket was another package launched to facilitate the customers who call frequently from fixed line to mobile networks within Pakistan. A positive shift in land line usage was witnessed because of unified rate of Re.1 per minute on-net calls.
PTCL has also worked on the network expansion in the financial year .The Pakistan Internet Exchange (PIE) has been expanded by establishing an international presence. PTCL has also planned expansion in unserved areas through USF subsidy. PTCL has established Centralized Network Operation Center (NOC), and entire PTCL network is now being remotely monitored thus enhancing the operational efficiency.
President PTCL Walid Irshaid commenting on the results said, “I am pleased to announce that we remained focused on our strategy of positioning PTCL as the leading integrated telecom company in Pakistan providing multiple solutions to business and household market segments and extending vital services to other telecom operators in Pakistan”. He said “we remain highly conscious of the fact that our success and growth can only come from satisfied customers it remains our challenge to provide friendly, seamless and prompt customer’s service.
To this end, we endeavored to embark on several projects intended to bring PTCL closer to the customers”. On this occasion he further said that “we strongly believe that PTCL is poised to grow and remain the leading and dominant integrated telecom service provider of choice for customers throughout Pakistan”.
The management and employees of PTCL remain committed to provide quality services at competitive prices through optimal use of resource for achieving enhanced revenue and greater levels of customer satisfaction as well as improved shareholders’ value.
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