PTCL Remains In Losses During Q3 2015

Despite the growth scenario projected by the federal government and international rating agencies, the business situation is getting deteriorated for telecom sector as showed by the biggest telecom giant of the country, PTCL Group remained in losses of Rs. 371 million during third quarter of 2015.

Financials of PTCL Group

The losses of PTCL Group were mainly due to heavy investment made by Group on its subsidiary Ufone, for rolling out 3G networks in different cities and while operating profits of cellular phone companies declined after imposition of taxes on 3G services.

The higher taxation increased the expense of Ufone as cellular phone company is still paying taxes to Punjab Government from its own pocket instead of passing GST to customers of mobile internet or 3G services.

Punjab Government has announced that it will withdraw 19.5% GST on internet services, however, official notification for reversal of taxes is still awaited even after five months of original announcement.

Revenue losses of PTCL Group are also attributed to decline in EVO subscribers after introduction of 3G/4G services in the country.

Besides, high operating cost, declining earning and expenses on infrastructure kept the bottom-line of PTCL in the red.

The revenue of telecom giant declined to Rs 29 billion in the period of July to September 2015, slightly down from Rs. 30 billion it generated during same period last year, but operating profit declined by 78 percent to stand at Rs 328 million, as against of Rs 1.5 billion recorded in the same period of last financial year.

The expenses of the group stood at Rs 6.62 billion whereas the finance cost is reported at Rs 1.86 billion.

PTCL Profit Grows by 7%

PTCL, without its subsidiaries, demonstrated a profit of 7 percent in the first half of 2015-16.

According to financial results disclosed by board of directors recently, the PTCL’s overall profit stood at Rs 1.866 billion in the third quarter of 2015 as against profit of Rs 1.744 billion it reported during the same period of last financial year.

During the period, the group revenue posted a decline of 4.8 percent to settle at Rs 18.76 billion as compared to same period of last financial year.

Company’s selling and marketing expenses remained flat at Rs 3.353 billion, which eroded its profitability besides losses under the head of finance cost which stood at Rs 124 million.

The balance sheet of the Group disclosed to stock exchange also stated results from January to September to show revenue situation as stable and positive.

Hence, PTCL group revenues were seen to stand at Rs. 90.1 billion, while gross and net profit of the group stood at Rs. 24.4 billion and Rs. 2.8 billion respectively, in the period of January to September. This is because of the impact of half year of 2015 which was comparatively better than the present situation which is quite challenging for the telecom giant.

      • Incompetent management hired at fat salaries to appease some big-wigs,Declining Number of EVOs, Rising number of court cases on account of poor managerial decisions and Higher legal fees paid to high brand but incompetent lawyers (Who pay due share out of this legal fee, as kick-back to CFO,CHRO and EVP Legal Ms. Zahida Awan the close relative of a Fake phd. lawyer Mr. Babar Awan), Declining over-seas revenue on account of poor performance EVP International Business ( husband of DMS PTCL Islamabad and brother-in -Law of Lady Doctor Whose transfer from Lahore to Gujranwala was cancelled on the same day A lone example in ETISALA ERA). At the moment salary of CEO is $100000/-(Rs10.5M)+perks, CHRO Rs.2.7 million,CFO Rs.2.7 Million, Mr.Adnan Shahid S/O Mr. Shahid Anwer Bajwa(Head of PTCL Legal penal in recognition of his services rendered during his service for PTCL management Being justice of Sind High Court) as Chief Commercial Officer Rs.800000/- Mr. Sikandar Naqi Cheif MUK-MUKA officer Rs.1.6M ( with heavy brief case loaded with cash to be distributed as speed money speed among various ministries to promote corruption).The competence of management is reflected by the ANR-2014 by the fact the pictures displayed do not match the names the members of this mature team

        • Please correct the information. I dont know about others but Mr. Adnan Shahid is not son of Mr. Shahid Anwer.

          He is son of Shahid Naveed ex-Fazaiya.
          and he is very competent person, he served in Mobilink, CMPak and reputed organization on high management positions.

          • Please correct your information. He is son of Mr.Shahid Anwer Bajwa former Judge of Sind high court whose practicing licence faced suspension and is allowed to work under stay orders. This gentleman though a graduate from MIT but the piece of paper does not prove his credentials to run a complex large organisation like PTCL, which is evident from the dwindling/declining commercial performance. PTA can bear this out. It is the corrupt elite ruling this poor country which is handicapped to take any action because of their black money stacked in Dubai

        • Ignoring effords of Engineers and techs .WLL services goes down for months and they even dont pay attansion to customers .Fuel threift etc all the major no ptcl happy pakistan

  • These zardari and nawaz have made sure Pakistan gets bankrupt and stays underdeveloped by imposing this high percentage of tax on telecommunications. While rich like themselves pay nothing or peanuts. Klasra also exposed these telecommunication companies which do collect taxes from public but don’t pay to revenue Dept. Sooner or later country will turn into somalia.

      • Alhamholillah I am much better than them, Apko agar un ki itni side leni hai to phir is mulq me jo kuch bhi horaha hai ap ko mubarak aur mazeed kharabi ap ka muqadar ho!

    • Don’t put blame of everything on politicians. There are employee who are selling internet connections for cheap and they are involved in internet theft with the help of mac addresses and different IP’s. Another thing is most of the dept and govt institutes don’t pay bills and they make unnecessary calls even international calls from them, which remained in debt for whole life.

      • It is allowed by the corrupt govt to happen here,sadly .no country allows this kind of corruption in civilized developed world.

    • Dear PTCL is running under Etisalat group of UAE, and that privatization was made under Musharraf Govt. Correct your Knowledge.

      • کچھ لوگوں کو حکومت کے خلاف بولنے کے پیسے ملتے ہیں انٹرنٹ پر آج کل یہ کمانے کا ایک ذریعہ بن گیا ہے

      • I’m not taking about privatization instead what I’m saying that these zardari and nawaz has put so much tax on everything that it’s hurting economy overall and hampering growth.

  • What was the Financial performance of Ufone? How much money did they make? What was their Average Revenue Per User (ARPU)?

  • @Mian Wattu Sir, how could forget Kamal Ahmed, CDCSO (Chief Digital & Corporate Services Officer) – he is the SUM of All the Incompetents at PTCL. He was specially adjusted in this ODD position (just let the name speak) for his special services to PML-N during campaign days – Clever chap. GOD bless PTCL.

  • Third class technology purchased at inflated rates for hefty kick backs paid to technically/ administratively incompetent management is the major cause of poor service.

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