ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL) reported significant losses amounting to Rs3.4 billion for the three-month period ending June 30, 2024. This marks a sharp rise from the Rs2.1 billion loss recorded during the same period last year.
According to the latest financial results disclosed to the Pakistan Stock Exchange (PSX) on Wednesday, PTCL’s losses deepened despite an increase in both revenue and gross profit.
The company’s revenue saw a robust growth of over 21%, reaching Rs55.85 billion in the second quarter of the calendar year 2024 (2QCY24), up from Rs46.04 billion in the same period last year. Additionally, the cost of revenue increased by more than 11%, totaling Rs40.4 billion in 2QCY24 compared to Rs36.3 billion in the corresponding period last year.
Despite the rise in costs, PTCL’s gross profit surged by over 59% year-on-year (YoY), reaching Rs15.5 billion in 2QCY24, translating to a profit margin of 27.7%, up from 21.2% in the same period last year.
However, the company faced mounting challenges with operating expenses, which jumped 32% to Rs12.97 billion, compared to Rs9.8 billion in the same period last year. Compounding these difficulties, PTCL’s other income dropped to Rs4.76 billion in 2QCY24, down from Rs6.68 billion in the previous year.
The most significant burden came from a sharp rise in finance costs, which soared by over 29% to Rs12.7 billion in 2QCY24, driven by increased interest rates throughout the year.
As a result of these financial pressures, PTCL posted a pre-tax loss of Rs5.5 billion for the quarter, compared to a Rs3.3 billion loss in the same period last year.
Incorporated in Pakistan on December 31, 1995, PTCL provides telecommunication services across the country. The company owns and operates various telecommunication facilities, offering both domestic and international telephone services along with other communication solutions.
PTCL’s key assets include Ufone, a mobile operator in Pakistan with a customer base exceeding 20 million. The company is managed by Etisalat, which holds a significant minority stake, while the government of Pakistan retains the majority ownership.
In a recent development, PTCL appointed Azfar Manzoor as its new chairman last week.
