PTCL Profits Down 2.2% in First Half of 2016

Facing different challenges and operational issues, PTCL Group failed to sustain its profitable growth during the second half of 2016. Its profits declined by 2.2 percent when compared with last year’s corresponding period.

According to financial results released by the company, PTCL Group posted a profit of Rs 3.163 billion in the first half of 2016 as against Rs 3.935 billion reported in the first half of 2015.

The cut in profit growth was driven by sluggish profitability of the Group due to dwindling financial performance in the second quarter, which took a substantial dip by 45 percent from previous year’s quarter.

It is worth mentioning that in the first quarter of 2016 the Group managed to post a record growth of 146% profitability versus the bottom line of the previous years.

2nd Quarter Performance of 2016

The quarter of April-June witnessed a profit of Rs 1.324 billion in 2016 as compared to Rs 2.447 billion in profits for the same months of 2015.

The Group revenues slipped down by 3.4% in the first half of 2016 on year-on-year basis, standing at 58.9 billion. It provides an interim cash dividend of Rs 1 per share to its shareholders.

PTCL Company Stats

PTCL Company profit without its subsidiary such as Ufone and U Microfinance bank, went down by 8 percent. It secured a profit of Rs 5.565 billion in the first half of 2016 as compared to Rs 6.07 billion profit recorded in the corresponding period of 2015.

Challenges

One of the known challenges reported by company’s official is that PTCL Group reimbursed billion of rupees on account of pension raise for its retired or ex-employees in the second quarters.

The increment in the pension was part of the government announcement under the Federal Budget 2015-16, which it implemented late but had to pay out the upgraded pension scale to its nearly 40,000 ex-employees.

The new leadership of PTCL which assumed its office early in 2016 will have devise a plan to mitigate different issues and challenges that the Group and its subsidiaries are facing.

In order to maintain growth in profitability with expansion of services and operations in the country in which different operations are giving competition to its brands in the field of cellular phone and broadband services, PTCL has its task cut out for it.

PTCL Company Stats

PTCL_Company

PTCL Group Stats

PTCL_Group


  • Raja Maja

    Insha Allah agay aur bhi kam hoga.

    • Sheldon Cooper

      this just made me laugh so hard :)

  • Most of people have shifted to Zong 4G, the better solution.

    • Muhammad Usama Masood

      Right. Me shifted to Zong 4G as well.

    • yoyokhan

      isn’t it more expensive than ptcl?

  • Adam-Building The Credible Web

    Time to buy PTCL shares

    • Raja Maja

      are you insane, company is showing losses and will not declare any EPS to shareholders and more chances a dip in share value so are you now going to buy?

      • Adam-Building The Credible Web

        Brother , recheck they showed profit for both 2nd quarter and half year results, who tell you that they haven’t declare EPS, they announce cash dividend of Rs. 1 per share. Despite the bullish trend in market, its share is touching the lower level and ideal time to buy its share. Within two weeks its share will get 5-6 Rs increase. Lets your finger crossed by that time.

    • Bonga

      Quit hyping the penny stock. PTCL has no growth strategy — WLL subscribers are down, DSL subscription is down, landline is down — the only line of business bringing revenue is interconnect and LDI. The company failed to upgrade the last mile with fiber and has incompetent leadership, both at PTCL and Ufone. The company needs to break-up Ufone & PTCL evenues separatemy to show investors where the issues are.

      • Adam-Building The Credible Web

        The issue is with Ufone, all the other cellular operators are able to increase their customers and revenues and its only Ufone which is loosing both. They should made some local CEO who understand local market, condition and competition, by the time their German CEO will understand the local conditions, it will be too late for Ufone and most likely Zong or Telenor may acquire them by that time.