PTCL Records Loss in Q2 Despite Revenue Growth, Maintains No Changes in Shareholder Entitlements

Islamabad: The Board of Directors of Pakistan Telecommunication Company Ltd (PTCL) convened on August 28, 2024, to discuss the financial results for the quarter ending June 30, 2024. The board announced that there would be no issuance of cash dividends, bonus shares, or rights shares to shareholders for the current period.

According to information available from the Pakistan Stock Exchange (PSX), PTCL reported a revenue increase to 55.85 billion Rupees for the three months ending June 30, 2024, up from 46.04 billion Rupees in the corresponding period last year. This increase was overshadowed by significant costs, leading to a net loss for the quarter.

The company’s operational challenges were reflected in its increased cost of services, which rose to 40.38 billion Rupees from 36.29 billion Rupees year-over-year. Gross profit for the quarter was 15.47 billion Rupees, demonstrating a substantial improvement from 9.74 billion Rupees in the previous year. However, administrative, selling, and marketing expenses also rose, totaling nearly 12.97 billion Rupees, contributing to an operating profit of only 2.50 billion Rupees, a slight recovery from a minor loss in the previous year.

Other income for the quarter amounted to 4.76 billion Rupees, a decrease from 6.68 billion Rupees last year. Finance costs remained a major burden, amounting to 12.74 billion Rupees, exacerbating the financial strain and leading to a pre-tax loss of 5.49 billion Rupees.

The cumulative loss for the first half of the year was 8.91 billion Rupees, compared to a loss of 7.95 billion Rupees during the same period in 2023. Despite the growth in revenue, escalating costs and financial charges have continued to hinder profitability.

PTCL’s quarterly report will be detailed further and transmitted through PUCARS within the specified timeframe, providing shareholders and stakeholders with a comprehensive view of the company’s financial health.

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