PTC loss narrows 32% in FY25

February 24, 2026 (MLN): Pakistan Telecommunication Company Limited (PSX: PTC) reported a net loss of Rs9.75bn for the year ended December 31, 2025, which narrowed 32% from the Rs14.39bn loss recorded in the previous year.

The company's loss per share decreased to Rs1.91 from Rs2.82 in the corresponding period.

The telecommunications company's revenue increased 12% year-on-year to Rs251.73bn from Rs224.26bn, demonstrating solid top-line growth.

Cost of services rose marginally by 1% to Rs167.76bn from Rs166.86bn, resulting in a gross profit of Rs83.98bn, up 46% from Rs57.40bn in the prior year.

The gross profit margin improved significantly to 33.4% from 25.6% in FY2024, indicating substantially enhanced operational efficiency and better cost management.

Despite the improved margins, the company remained in loss territory with a negative net profit margin of -3.9% compared to -6.4% in the same period last year, which reflected the company's progress toward profitability.

Administrative and general expenses declined marginally by 1% to Rs32.61bn from Rs32.86bn, demonstrating effective cost control.

Selling and marketing expenses increased 4% to Rs13.88bn from Rs13.31bn.

The company recorded an allowance for expected credit losses of Rs18.14bn, surging 2.5 times from Rs5.12bn in the prior year, representing a significant provisioning charge that heavily impacted profitability.

Operating profit increased 2.2 times to Rs19.35bn from Rs6.12bn in FY2024, reflecting the substantial improvement in gross margins despite the higher credit loss provisions.

Other income declined 17% to Rs21.15bn from Rs25.62bn. Finance costs and other expenses decreased 11% to Rs46.66bn from Rs52.63bn, providing some relief as borrowing costs moderated.

Loss before tax stood at Rs14.81bn, narrowing 29% from Rs20.90bn in the prior period. The company recorded an income tax credit of Rs5.07bn, down 22% from Rs6.50bn in the corresponding period last year, which helped reduce the net loss.

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