PTCL is likely to post net profits of Rs 7.7 billion (EPS Rs1.52) for 9M (Jul-Mar) FY09, versus net loss of Rs 6.6 billion (Loss per share Rs1.29) in 9MFY08, reports ‘The Nation’.
The Telecom Company is expected to announce its 9M (Jul-Mar) FY09 results in its press briefing to be held today (Thursday) at a local hotel in city.
Experts said that the main reason for the sharp turnaround in profitability is the one off Voluntary Separation Scheme (VSS) provisioning amounting to Rs23.2b carried out in the corresponding period last year. Excluding VSS cost, profits of the company are expected to depict a fall of 9pc YoY.
Despite increase in revenues post revision of Access Promotion Contribution and lower payroll costs, earnings are likely to remain under pressure due to significantly higher financial charges. Farhan Rizvi, a telecom analyst, observed that PTCL revenues would rise to Rs46b – a growth of 5pc YoY. Moreover, reduction in payroll cost on account of VSS will help keep operating cost largely stable.
In contrast, due to exchange losses, financial charges are expected to rise to Rs1.1b, up 135pc YoY. Moreover, other income of the company is expected to decline by 13pc to Rs3.0b due to lower cash balances post huge VSS payoff last year. Going forward, recent revisions in international interconnection charges along with growth in the broadband segment will continue to support revenues. Moreover, despite intense competition and slowdown in the cellular growth, Ufone continues to be one of the top performers amongst cellular companies, which bodes positive for future dividend income of PTCL.
Via [The Nation]
