Pakistan Telecommunication Reports Decline in Quarterly Profits Despite Increased Revenue

Islamabad: Pakistan Telecommunication Company Ltd (PTCL) reported a notable decline in its quarterly profit despite an increase in revenue for the period ending June 30, 2024. According to the un-audited financial statements released by the company, PTCL achieved a revenue of 26,776.58 million rupees for the three months ended June 2024, up from 23,973.12 million rupees in the same period last year.

Despite the revenue increase, the company’s profit after tax for the quarter stood at 705.82 million rupees, a decrease from 1,509.66 million rupees reported in the previous year. This decline in profitability can be attributed to higher finance costs and operational expenses. Finance costs surged significantly to 5,703.59 million rupees from 2,974.12 million rupees year-on-year.

Operating profit for the quarter was 2,732.73 million rupees, up from 2,269.72 million rupees in the prior year, reflecting a moderate improvement. The cost of services and other operational expenses also saw an upward trend, contributing to the squeezed profit margins.

According to information available from the Pakistan Stock Exchange (PSX), other income for the quarter rose to 4,098.41 million rupees from 3,190.49 million rupees in the corresponding quarter last year, providing some offset to the increased costs.

The company announced that there will be no cash dividends, bonus shares, or rights issue as part of this quarter’s financial results. Additionally, PTCL Group’s consolidated financial results have not been released yet due to ongoing reviews of one of its subsidiaries. The company expects to publish the consolidated financial statements once the review is complete within the stipulated timeframe.

The detailed quarterly report will be transmitted through Pakistan’s Unified Corporate Reporting System (PUCARS) separately, adhering to the regulatory timeline.