ARY Communications Ltd to Acquire a 51% Stake in World Call Telecom

ARY Communications Limited has made a public announcement of the intention to acquire more than 51% of the issued and paid-up share capital, and control in World Call Telecom Limited.

Shajar Capital Pakistan, working on behalf of ARY Communications, sent the notice to the exchange. Shajar Capital has been appointed as the manager to the offer by ARY Communications and ARY Digital FZLLC.

Major shareholders of World Call Telecom Limited include WorldCall Services with 27.79% holding, Ferret Consulting with 17.97% holding and ABM Management Consultants with 7.51% share in the company.

Based on the annual audited accounts for 2018, the total number of issued shares of World Call Telecom are 1,805,921,917 at the price of Rs. 10 per share. After the announcement, WTL’s shares at the stock exchange touched a high of Rs. 1.33 and are now trading at Rs. 1.22, up by Rs. 0.02 with a turnover of 17.76 million shares.

Financial Results for Q1-Q3 2019

World Call reported a Rs. 272 million profit after tax, down by a massive 72.3% as compared to Rs. 981 million earned last year.

The company’s revenue witnessed a slight increase of 2% to Rs. 3.3 billion as compared to Rs. 3.32 billion, indicating sustained growth compared to last year, with LDI (Rs. 1.66 billion) and the broadband businesses (Rs. 1.7 billion) being the major contributors to the revenue.

The primary reasons for profit erosion are the decrease in other income and an increase in finance cost. Other income has reduced to  Rs. 553 million since major liabilities’ writebacks were done in the financial year 2o18 whilst the finance cost has risen sharply because of the upward hike in the KIBOR rate. Earnings per share of the company were down to Rs. 0.15 from Rs. 0.21

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