WorldCall Telecom Company, a telecom and media service-provider, reported a massive drop in profitability by 83 percent in 2019.
The company made a profit of Rs. 72.298 million in 2019 compared to Rs. 446 million reported in 2018. Mismanagement and technical issues in operations and services continued to drag the service provider towards losses despite the potential and benefits of the old company in its sector.
The primary reasons for profit erosion are the decrease in WorldCall’s other income and an increase in finance cost. The company continues to consolidate its standing with the exit of its previous sponsors.
Two years earlier, the company made a profit of Rs. 6.1 billion after a gap of 5 years in 2017. The injection of $20 million by OmenTel again gave a lease of life to the telecom company to stand on its own in the market but the new management could seemingly not sustain the financial health and operational performance of the company which resulted in the gradual decline of profitability by the company over just 2 years.
In 2008, Oman Tel bought major shares (56.8%) of WorldCall Telecom at $193 million. It exited WorldCall in 2017 with the injection of $20 million to write-off its liabilities under its exit plan.
Before 2017, the company made several attempts to sell out its shares dealing with various groups – including PTCL and Dunya Group – but the deals were unsuccessful due to failure in negotiations and employee strikes.
The management of WorldCall Telecom is reportedly engaged with ARY Group for potential merger and acquisition deals however any deal cannot proceed until the company writes off its liabilities of various business entities and vendors.
The company claims to have over 1.2 million subscribers using its broadband services.
Combined with 6 head-ends and the largest cable TV infrastructure in Pakistan, fiber optic connectivity has the potential to connect nearly 4 million home passes.
In 2019, the company acquired state-of-the-art Switch placing for expanding its LDI business – one step ahead of its competitors. On the broadband front, it entered a joint venture agreement with Technology at Work ([email protected]) for the provision of high-speed internet nationwide.