PTCL earns net profit of Rs 1.4 billion in Q3FY12

Staff Report

KARACHI: The Pakistan Telecommunications Company Limited (PTCL) has gained net profit of Rs 1.4 billion in its third quarter earnings for fiscal year 2011-12 for the period ending on March 31, 2012, showing a growth of 11.3 percent in revenue.
“PTCL’s profits and revenue growth during the third quarter of FY12 is a strong indicator of our dynamic corporate direction as well as our customers’ continued satisfaction and trust,” said PTCL CEO and President Walid Irshaid, following a meeting of the company’s board of directors held here on Wednesday, which announced the company’s nine-month financial results for the period ending March 31, 2012. “Through optimal use of resource, we want to achieve enhanced revenue, greater levels of customer satisfaction, as well as improve our shareholders’ value,” said Irshaid.
According to the PTCL’s BoD announcement, PTCL’s group revenue stood at Rs 28.3 billion during the period under review, showing a growth of 9.7 percent over FY11. Of this, PTCL’s revenue was Rs 14.8 billion.
Despite the economic challenges faced by Pakistan, PTCL has remained strong throughout 2011-12 in emerging segments of Broadband in Wire-line as well as Wireless, and other corporate services.
“We are constantly innovating and improving our customer experience,” said Irshaid, while recounting the successes of PTCL’s most recent business offerings. “We strongly believe that PTCL will remain the market leader and a service provider of choice throughout Pakistan for providing cutting-edge integrated telecom solutions to our customers.”
Furthermore, The PTCL declared its earning per share of 83 paisas, depicting a decline of 14 percent from 97 paisas reported in the same period last year.
However, detail accounts for consolidated earnings that include Ufone’s earning contribution to PTCL are still awaited.
Preliminary assessment suggests that consolidated earnings would fall in the range of Rs 1.35 to Rs 1.40 per share, down 10-13 percent from Rs 1.55 per share reported in the same period last year. Furthermore, after a gap of three years PTCL has skipped dividend with March results. Since 2009 the company has been paying dividend in March quarter as against the common practice of paying dividend with full year announcement.
On stand-alone basis, 8.0 percent growth in company’s topline has failed to translate into bottomline as ailing fixed line operation has reduced company’s ability to pass on cost pressure arising from higher salary head as well as impact of inflation in other heads.
In addition, decline in company’s other income by 38 percent to Rs 2.6 billion in nine month 2011-12 as against Rs 4.2 billion last year also lend its hand in dragging overall earnings downwards.
In 3QFY12 PTCL posted unconsolidated EPS of 27 paisas, up 42 percent as compared to 19 paisas in same period last year.

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