PTCL to Cut OPEX, Will Focus on High End Products

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.


  • F

    This means no salary raise this year too… hahaha ha haa ahhhh sniff sniff… :-(
    (More KPI’s more work but no reward)

  • The Truth

    how can you focus on high end products and give low end service. Stupid people !!

  • TRUTH

    u haave to keep the employees happy………other wise the company can never rise no matter how much OPEX they cut…………..

    • F

      Agreed, this will result in further deterioration of the Company.

  • Nabeel | Create Your First Website

    First Focus on providing services which actually work!

    I know COUNTLESS people who have problems with PTCL DSL (Pair issue, sync issue, SNR issue and what not.

  • majid

    ALSO AFTER MR AHMAD KAMAL HAS BEEN APPOINTED VP CUSTOMER CARE UFONE,UFONE EMPLOYEES ARE GOING THROUGH GREAT PRESSURE THEIR INCENTIVES HAVE BEEN REDUCED AND MOST OF THE EXTRA CURRICULAR ACITVIES ARE NO MORE IN PRACTICE AND THIS HAS CREATED A BAD SISTUATION IN UFONE AND EMPOYEES ARE DEMOTIVATED EVEN MR AHMAD KAMAL DOSENT LISTENS TO ANY CONCERNS OF EMPOYEES….DICTATORSHIP STARS IN UFONE…

  • Margin Pressure

    There is pricing pressure from the market. Nearly all companies have had some amount of reduction in revenue (or if revenue has remained stable, their costs have gone up). For the most part, I think PTCL is doing just fine. Better than ever actually.
    The management should continue to remain focused and worry about the bottom line (which has improved for quite a while) and be confident and have the ability to stomach the drop in low quality revenue (i.e. that which comes at great cost).
    Another strategy could be to continue with acquisitions such as of Warid or Telenor or even Mobilink. In the DNOP space they could acquire Nayatel, Nexlinx, HRI and Cybernet like they have Maxcom.