PTCL has decided to cut administrative and general expenses to increase operating income, after decreased revenues than expected and as per budget for year 2009/10.
On consolidated period for 3 quarters (9 months) from 1st July 2009 – 31st March 2010 PTCL’s net profit stood at Rs.7.86 billion compared to Rs. 7.22 billion for the same period last year, which was higher than the last year, but 14 per cent less than the budget of FY 09/10.
This was revealed by The News, based on board of directors’ meeting minutes, which were made available to the paper.
The PTCL Group Revenue of Rs 73.6 billion for the period under review was 7 per cent higher against the corresponding period last year because the revenue earned by PTML (Ufone) was higher by 17 per cent as compared to the corresponding period last year, it said.
The minutes further revealed that a detailed discussion took place on the need for further controlling cost keeping in view the current scenario faced by the company.
One of the members said that the chief financial officer should monitor the revenue levels flowing in and accordingly should place effective control mechanisms on the monthly Opex.
The board also empowered the PTCL chairman and the president and chief executive officer to finalize and sign the directors’ report, it added.
The board appreciated the high-tech telebiz (video-con) facility installed by the company and advised the management to opt for an aggressive marketing plan as this was a potentially high revenue project for Pakistan where travel-related cost and security was an issue.
The board highly appreciated the Data Centre project recently completed in Karachi and advised the management to highlight this achievement as part of Etisalat-PTCL Group achievements.
It advised effective marketing and promotion of the state-of-the-art centre for customer acquisition.
The board also advised that the management should prepare and present its short-term, as well as long-term strategy for converting the company into a full-fledged ICT company.
The CTO gave a presentation on the project and explained the need and rationale for this project, which pertained to providing high quality service to the business community.
One of the board members advised that the synergy needs between Ufone and PTCL should also be taken care of and the IMS should not be started by PTCL without taking into account the technology needs of Ufone, as well.
It gave, in principle, approval for the project, but advised the management to present the project before the board along with the 2010/11 capex for final approval.
The board also advised to explore and plan achievement of the group synergies, which should arise out of this project.