Worldcall issued results of the quarter and 9 months period ending 30th Sep,2009. Here is what the company release mentioned.
The Company was able to show a remarkable growth of 75% in its revenue for the current period that stands at Rs. 6,045 million as against Rs. 3,450 million of the corresponding period last year. This growth was pivotal in turning the operating loss of Rs. 34.2 million to an operating profit of Rs. 68.2 million for the period under review.
Gross profit ratio however declined from 26.4 % to 16.5 %. Since interconnect and settlement charges remained significantly high during the current period, direct cost witnessed a sizeable increase of almost 100% which consequently affected the profit margins. The direct costs also soared on account of the depreciation charges that significantly increased due to enhancement in equipment and infrastructure. The effective budgetary and control measures helped in curtailing the unnecessary expenses and operating costs showed a positive variance of Rs. 12.8 million during the period.
The finance cost increased by 11% to stand at Rs 329 million. The increase was contributed by the interest expense on the TFCs of Rs.121 million. Further the quoted securities in which the Company had investment suffered significant decline in the market values. Consequently the Company had to recognize an impairment loss of Rs. 168 million. The heavy loss due to impairment and higher incidence of finance cost resulted in the net loss after tax of Rs. 346 million.
With increasing awareness and usage of information technology, broadband segment is going to be in limelight for days to come. The Company has already launched EVDO services in major cities like Karachi, Multan, Lahore, Gujranwala, Faisalabad and Sialkot.
Preparations are under way to commence services in Peshawar in next quarter. The data services segment offers great opportunities for success and growth and therefore enjoys a central position in the overall expansion and future roll out plans of the Company. Developments have also started in six districts of MTR for which the Company won a roll out project of data services in a bidding of Universal Service Fund.
The international operations are also expected to expand in lucrative directions as the Company has plans to enter into new markets by colliding with different international operators.
The Board also approved a business plan for the next years whereby WTL would expand and enhance its existing network, improve service quality and bring products in the market for the end user as well for the corporate entities as a solution provider.