By Gulshan Naz: PTCL profitability continued to show lackluster trend as it made a profit of Rs 716.4 million in the first quarter of 2015, down from Rs. 4.4 Billion that it made during same duration last year, showing a challenging financial situation due to heavy expenses of license fees of its subsidiary, Ufone and deployment of biometric verification machines.
Group revenues declined to Rs 30.17 billion in the said period as compared to Rs 33.37 billion from the corresponding period of 2014.
PTCL’s financial cost surged 385% YoY to Rs 1.4 billion primarily due to heavy debt taken by its subsidiary Ufone for the acquisition of 3G license and renewal of 2G license which expired last year.
The company spent Rs 2.4 billion on different marketing and advertisement activities on the media whereas its general expenses grew to Rs 4.2 billion.
Besides expenses, the operating income of the company squeezed which actually made significant impact on the balance sheet. The company earnings under this head dropped to Rs 1.745 billion in the first quarter of 2015 as compared with Rs 5.92 billion during the same duration last year.
In outgoing year of 2014, the telecom group made a profit of Rs 3.966 billion in 2014 as against profit of Rs 15.752 billion that it made in 2013, which shows a decline in profitability by 74 percent.
Struggling results were felt by shareholders as well since no dividends were announced and a decrease in EPS to 0.14 from 0.48.
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