World Call Telecom has announced its financial results for the first half of 2019.
The company reported a profit of Rs. 194 million, down by a massive 70% from a profit of Rs. 640 million in the same period last year.
World Call’s revenue remained almost the same, fluctuating by only 1%, which was stated at Rs. 2.26 billion as compared to Rs. 2.29 billion in the period under review. LDI services contributed (Rs. 993 million) and the broadband businesses contributed (Rs. 1.26 billion) to the earnings. The primary reasons for profit erosion were a decrease in other income and the increase in finance cost.
Other income was reduced by Rs. 291 million, reaching Rs. 403 million as compared with Rs. 694 million in the corresponding period last year, since major liabilities’ writebacks were done in the financial year 2o18. The finance cost rose sharply by 119.30% to Rs. 250 million as compared to Rs. 114 million because of the upward shifts in KIBOR rate.
World Call booked a tax rebate of Rs. 20.85 million as compared to the tax paid of Rs. 17.70 million in the same period last year. The earnings per share of the company were Rs. 0.11 as compared to Rs. 0.09.
According to the company’s report, the targets have been broken down into quantitative objectives with emphasis on productive utilization of dormant assets, enhanced quality service while monetizing associated offerings. The company is maintaining its assets and with the stability achieved, it is targeting aggressive growth in the upcoming quarters. For the broadband segment over 1.2 million subscribers have come into the company’s network until now.
The report stated that contracts with 2 leading global vendors for the supply of digital boxes are in place. Furthermore, negotiations are being held with 2 potential DTH license holders to provide end to end Direct to Home (DTH) solutions.
The company is also looking to launch Fiber to the Home (FTTH) soon, as target areas along with vendors have been finalized. The pilot testing phase has been completed in the desired areas receiving a promising response. Moreover, the report stated that subscribers through loop holders would also be roped in for the FTTH service.
WTL’s script at the bourse was closed at Rs. 0.82, up by Rs. 0.07 or 9.33% with a turnover of 12.19 million shares traded on Monday