PTCL Group failed to apply brakes on its negative growth streak that continued during the first quarter of 2017 as revenues dropped by 31.4% in Q1 2017 compared to the same period last year.
According to the financial results declared by Board of Directors’ meeting in Islamabad, the profits of PTCL Group declined to Rs 2.145 billion by end of first quarter of 2017 as compared to Rs 3.13 billion reported during the same period last year.
The telecom giant closed the financial year of 2016 with drop of 21% profit which aggravated in the first quarter of 2017.
The profit of first quarter declined due to huge drop in the earnings derived by the company under “Other Income”. It declined to Rs 810 million in 1Q of 2017 from Rs 2.286 billion in 1Q of 2016.
According to PTCL financial report, the head of other income includes revenues through return on bank, mark up on long term loans (to subsidiaries), late payment surcharge from subscribers on overdue bills, recovery from written off defaulters, gain on disposal of available for sale investments, dividend income and etc,.
PTCL operating income also fell by 5.3 percent in the first quarter. It decreased to Rs 2.43 billion in the first quarter of 2016 compared with Rs 2. 57 billion of previous year’s quarter. Its gross profit also fell by 1.4 percent to stand at Rs 5.36 billion by end of first quarter.
The new leadership of PTCL was appointed last year in March including foreign CEO and directors and they will require ample time to arrest drops in profit.
The leadership should take aggressive measures to resume profit-making journey of the group with continuous innovation and efficiency of the operations.
PTCL statement said:
A sequential growth of 2% was recorded in PTCL’s revenue in Q1 17 over Q4 16. Revenue from PTCL’s flagship Broadband service increased over same quarter last year. Likewise, wholesale services and international revenues also increased.
The operating expenses were reduced by 2% over the same period of last year thanks to cost optimization measures. Excluding a one-off individual project expenditure recorded in Q1 17, the operating profitability of PTCL increased by 3% in a like-to-like comparison to the corresponding quarter of 2016.
PTCL Group earned Rs. 28.8 billion revenue during Q1 17 with 1% reduction in its operating expenses also. The financial position of PTCL Group’s is quite robust as is evident from 9% increase in cash-based funds in the form of short-term investments and cash and bank balances during Q1 17.
PTCL marking its 70 years of service has embarked upon an ambitious transformation program for technology and customer services.
PTCL network is being upgraded to provide reliable high speed internet and digital services to consumers and corporate. The Company is modernizing its shops and other customer service touch points. It announced the partnership with iflix last week. PTCL customers will get one year access to iflix – the world’s leading Subscription Video on Demand (SVoD) service for emerging markets, offering users unlimited access to thousands of TV shows, movies and more.