Weak rupee pushes down PTCL profits2 min read

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ISLAMABAD: The recent currency devaluation has caused Rs1.5 billion loss to Pakistan Telecommunication Company Ltd (PTCL) as it reported consolidated half-year profit after tax of Rs2.138bn to the stock exchange.

“Had the currency not devalued PTCL’s net profit would have been higher by 28 per cent compared with last year,” Chief Financial Officer PTCL Nadeem Khan said at a press conference on Wednesday announcing the company’s financial results for the half-year ending on June 30.

Nadeem said that the PTCL group’s revenue for the first half grew 4pc year-on-year to Rs60.7bn. This had happened as a result of positive contribution by all group companies.

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During the second quarter, the PTCL group’s revenue increased 2pc.

The official said that Ufone revenue has increased by 5pc compared to last year despite tough competition in the cellular market. UBank, a microfinance banking subsidiary of PTCL, has shown significant growth of 71pc in its revenue over first half of 2017. PTCL group’s operating profit for the period improved by 57pc, he said.

“However, its net profit declined by 45pc mainly due to adverse impact of currency devaluation,” said Nadeem.

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He explained that PTCL revenue has registered 1pc growth. PTCL’s flagship Fixed Broadband DSL service posted revenue growth of 8pc over first half of 2017. Corporate business has also shown significant growth of 14pc over same period last year. Investments made in Charji/LTE during the last years have yielded positive results with revenue growth in double digits, said Khan.

There is decline in domestic and international voice revenues due to continued conversion of subscribers to over-the-top and cellular services. This, consequently, is declining voice traffic volumes. PTCL’s operating profit is lower by 2pc compared to the same period of 2017. He said, “Non-income has also declined due to reduced funds on account of VSS and CAPEX investment during last year. This has resulted in a 21pc lower Net Profit compared to first half of 2017 as reported.

“PTCL has announced an interim dividend of Rs1 per share, which amounts to a total of Rs 5.1 billion,” President PTCL Dr Daniel Ritz told the briefing.

(This news/article originally appeared in DAWN on July 19th, 2018)

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