Islamabad, October 14, 2016 (PPI-OT):Pakistan Telecommunication Company Limited (PTCL) bounced back to record a tremendous profit growth of 42 percent by the end of third quarter of 2016 as compared to same duration last year. Financial results for the nine months ended September 30, 2016 were announced during a Board of Directors meeting held in Islamabad on October 13, 2016.
The improvement in financial numbers were mainly because of the profit the group made during third quarter where it succeeded to book the bottomline of Rs 876 million as against loss it made in the same quarter of last year which had stood at Rs 371 million.
The Group revenue stood at Rs. 88.8 billion and with effective cost optimization measures, the operating expenses of the Group were reduced by 3% resulting into a net profit of Rs. 3.9 billion. PTCL’s revenue for the period was Rs. 54.3 billion with growth in DSL broadband revenue. The Company’s operating expenses during the period were reduced by 6% resulting into the net profit of Rs. 7.6 billion.
Telecom analysts said that improvement in profitability of the Group was seen due to performance of its subsidiary, Ufone which sustained its earning in the highly competitive market. On the other hand, the balance sheet showed the effective cost saving of the operations on different accounts which translated into profitability of the Group.
For instance, group expenses for administration, selling and marketing stood at Rs 18.3 billion so far in 2016 as compared to Rs 19.8 billion recorded in the same period of last year. The finance cost greatly reduced to Rs 2.74 billion in three quarters of 2016 which stood at Rs 4.23 billion in the three quarters of 2015. The overall group performance reflected the change of strategy by the new management which assumed the office earlier in 2016.
The effective operational management and growth in earnings through services may bode well to the company’s financial health, however, for a sustained performance, as a company as well as a group, PTCL will have to innovate itself in terms of services and will have to introduce new revenue streams in the future.
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Pakistan Telecommunication Company Limited (PTCL)
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