February 11, 2020 (MLN): Pakistan Telecommunication Limited (PTCL)’s net profits for the year ended December 31, 2019, has reduced by more than half i.e. by 58% YoY to Rs 2.3 billion from Rs 5.7 billion reported in 2018.
During the year, Operating profit of a company remained under pressure mainly due to an increase in operating cost on account of a significant hike in power tariffs.
However, non-operating income has increased due to higher income on investments as a result of an increase in interest rates, translation gain on forex denominated assets.
With regards to revenues, the company witnessed a paltry growth of 2% YoY primarily attributable to strong competition from cellular companies.
Alongside financial results, the board of directors of the company announced a final cash dividend of Rs 0.50 per share i.e. 5% for the year 2019. This is in addition to the Interim Dividend already paid at Rs 0.50 per share (5%).
|
Consolidated Financial Results for the year ended December 31, 2019, ended ('000 Rupees) |
|||
|---|---|---|---|
|
|
Dec-19 |
Dec-18 |
%Change |
|
Revenue |
129,542,521 |
126,862,364 |
2.11% |
|
Cost of services |
(95,661,182) |
(92,914,836) |
2.96% |
|
Gross profit |
33,881,339 |
33,947,528 |
-0.19% |
|
Administrative and general expenses |
(17,027,411) |
(15,412,101) |
10.48% |
|
Selling and marketing expenses |
(6,946,681) |
(6,819,420) |
1.87% |
|
Impairment loss on trade debts and contract assets |
(3,225,473) |
(2,256,420) |
42.95% |
|
|
(27,199,565) |
(24,487,941) |
|
|
Operating Profit |
6,681,774 |
9,459,587 |
-29.37% |
|
Other income |
6,156,874 |
5,721,522 |
7.61% |
|
Finance cost |
(9,202,708) |
(8,231,624) |
11.80% |
|
Profit before tax |
3,635,940 |
6,949,485 |
-47.68% |
|
Provision for income tax |
(1,258,840) |
(1,239,481) |
1.56% |
|
Profit for the period |
2,377,100 |
5,710,004 |
-58.37% |
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