October 14, 2020 (MLN): Pakistan Telecommunication company Limited (PTCL)’s net income fell by 41.67% YoY to Rs 1.56 billion for the nine months ended on September 2020, compared to Rs 2.67 billion reported in the same period last year.
The decline in company’s bottom-line is mainly attributable to rupee devaluation and the impact of covid-19.
The company derives its revenue from three key segments, namely retail, corporate and wholesale. The retail segment comprises Wire line, Voice and Wireless data services. The company acts as the backbone of telecom services within the country by providing wholesale services based on IP gateway, bandwidth and other line services where the key clients include Jazz, Zong, Telenor, Wi-tribe etc.
During the period mentioned above, PTCL Group’s revenue of Rs 95.65 billion is lower by 2.37% as compared to the same period of last year. As a result of this, the gross margins of the company fell by 1 ppts from 26% to 25%.
On the expense side, the company witnessed 6.55% surge in admin and general expenses, in addition it also booked impairment loss of Rs 2.54 billion, up by 19% YoY on trade debts and contract assets which impacted company’s operating profits by 36% YoY.
The company also observed 47.8% YoY decline in tax expenses from Rs 1.4 billion to Rs 740.27 million which provided cushion to company’s profitability.
Consolidated Financial Results for the Nine months ended September 30, 2020 ('000 Rupees)
Cost of services
Administrative and general expenses
Selling and marketing expenses
Impairment loss on trade debts and contract assets
Profit before tax
Provision for income tax
Profit for the period
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