Pakistan Telecommunication Company Limited (PTCL) sustained massive losses to the tune of Rs6.3 billion during the three-month period that ended September 30, 2024.
As per the latest consolidated financial results made available to the Pakistan Stock Exchange (PSX) on Tuesday, the company registered a loss of Rs2.8 billion in the same period of the previous year.
The increase in losses comes despite higher revenue and gross profit during the period.
The listed company’s revenue surged by nearly 11% to Rs55.56 billion in 3QCY24, compared to Rs50.09 billion recorded in the prior year.
The company’s cost of revenue increased up over 14% to Rs42.6 billion in 3QCY24, compared to Rs37.4 billion in SPLY.
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Consequently, the gross profit of PTCL inched by over 1% YoY to Rs12.9 billion in 3QCY24. This translates to a profit margin of 23.2% in 3QCY24, lower than 25.4% in SPLY
During the quarter, the company saw its operating expenses surge to Rs13.1 billion, up 26% compared to Rs10.4 billion in SPLY. Resultantly, PTCL posted an operating loss of Rs240 million, as compared to operating profit of Rs2.3 billion in 3QCY23.
Meanwhile, the company’s other income declined, hitting Rs2.9 billion in 3QCY24, compared to Rs6.3 billion in the previous year.
On the other hand, PTCL saw its cost of finance ballooned to Rs12.1 billion in 3QCY24.
As a result, the company posted a loss before tax of Rs9.4 billion during the period, as compared to Rs4.1 billion in SPLY.
Incorporated in Pakistan on December 31, 1995, PTCL provides telecommunication services in Pakistan.
The company owns and operates telecommunication facilities and provides domestic and international telephone services and other communication facilities throughout Pakistan.
PTCL’s major assets include Ufone, a mobile operator in Pakistan with over 20 million customers. Etisalat, with a significant minority stake, runs it under an agreement with the government of Pakistan, which has the majority stake.
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