AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,944 Increased By 65.8 (0.96%)
BR30 22,827 Increased By 258.6 (1.15%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)

Before the new financial results cycle starts, lets have a look at the recent financial performance of listed telecom firms for some cue into the future. After all, 2014 is being called a game changer year for Pakistans telecom industry.
But before that, it must be noted that the pervasive telecom industry seems drastically under-represented in the local bourses when one compares it to other giants like oil and gas, banks and textiles. Pakistans telecom sector generated Rs440 billion in revenues in FY13, according to a report by Pakistan Telecommunication Authority. But the combined revenues of the four listed telecom firms--PTCL, WorldCall, Telecard and Pak Datacom--make up less than a third of that figure.
As PTCL is the heavyweight among the listed telco scrips, its solid performance in CY13 made for good news for the sector.
PTCLs top line increased nearly 20 percent year on year to reach Rs81 billion in CY13. Growing revenues from segments like wireless broadband, controlled core costs and VSS-led administrative efficiencies helped this goliath to produce Rs12.69 billion in net profits, about 3.5 times the previous year.
As for PTCLs consolidated results, which include that of its cellular subsidiary Ufone, a massive top line of Rs131.2 billion was recorded in CY13.
Revenue surge and cost control measures helped the group in posting net profits of Rs15.75 billion for the year, which translated into an EPS of Rs3.09.
But, its been a subdued ride for rest of the listed telco firms lately. WorldCalls woes worsened in CY13 as its top line declined by 55 percent year on year to drop to Rs3.18 billion. That led to a sharp 40 percent year-on-year increase in net loss which reached Rs2.3 billion in CY13.
The management hopes to plug the business leakage through focused capital investment in network expansion and up-gradation projects.
The remaining two stocks have smaller business profiles. Telecard Limited--whose main business is LDI telephony, wireless local loop telephony, and wireless and public payphones--closed its half year in December 2013 with a 23 percent year-on-year revenue slump to Rs755 million.
The management has attributed lower international incoming voice traffic under ICH as the reason behind it.
Furthermore, higher distribution and administrative expenses, and exchange losses led to a meagre before-tax profit of Rs0.86 million for Telecard. However, that profit turned into Rs5.59 million net loss (Rs9.1million net profit in 1H FY13) after turnover tax rate was increased from 0.5 percent to one percent during the period.
The situation is a tad better for Pak Datacom Limited, which provides end-to-end data communication solutions via satellite. Its revenues declined by 10 percent in 1H FY14 to Rs366 million. Consolation came from lower outlays on core costs and distribution and administrative expenses.
The company, however, recorded a net profit of Rs52 million, a 6 percent drop over 1H FY13 profitability.
As Pakistani market gears up for next-generation mobile services, it is expected that data usage will grow for individuals, businesses and government entities.
Those telecom operators who are in the woods will need to invest now if they want to position themselves strategically for the opportunities that are going to present in the future.

Comments

Comments are closed.