Hum Network's annual profits decline by 17.5% on account of rising cost pressure

MG News | October 02, 2018 at 01:31 PM GMT+05:00

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October 2, 2018 (MLN): Hum Network Limited (HNL) has reported a 17.5% decline in its annual consolidated profits for the year ended June 30^th 2018, mainly due to surging cost of production, finance costs and tax provisions.

A Board of Directors meeting took place earlier today, in which the board reviewed the company’s financial statement for the year and drew a comparison with the earnings made during the previous year, i.e. the year ended June 30^th 2017.

As per the financial statement issued to the PSX, the company’s revenue for the year increased marginally by a mere 0.5% on a year-on-year (YoY) basis.

However, Rs.199 million increase in cost of production and Rs.102.5 million increase in transmission costs weighed down gross profits by 12.6%.

The company found momentary relief from 82% lower non-core expenses and 54% higher non-core income.

Unfortunately, since finance cost leapt up by 55% and the company spent Rs.51.6 million higher on tax provisions, the overall profits dipped by Rs.179 million, YoY.

Hum Network further recorded a 17.6% drop in basic and diluted earnings per shares, from Rs.1.08 per share to Rs.0.89 per share. YoY

Consolidated Financial Results for the Year ended June 30th 2018 (Rupees)
	Jun-18	Jun-17	%Change
Revenue	5,130,531,624	5,105,347,388	0.49%
Cost of production	(2,926,641,646)	(2,727,564,846)	7.30%
Transmission cost	(292,053,874)	(189,595,076)	54.04%
Gross profit	1,911,836,104	2,188,187,466	-12.63%
Distribution cost	(392,017,378)	(359,288,210)	9.11%
Administrative expenses	(660,219,368)	(666,597,956)	-0.96%
Other expenses	(29,562,693)	(169,811,134)	-82.59%
Other income	133,520,983	86,742,907	53.93%
Operating profit	963,557,648	1,079,233,073	-10.72%
Finance cost	(33,509,580)	(21,636,712)	54.87%
Profit before taxation	930,048,068	1,057,596,361	-12.06%
Taxation	(86,046,557)	(34,482,900)	149.53%
Profit after taxation	844,001,511	1,023,113,461	-17.51%
Earnings per share - basic and diluted	0.89	1.08	-17.59%

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