Telecard sees 50% profit decline in half-year results

March 04, 2025 (MLN): Telecard Limited (PSX: TELE) posted a net profit of Rs181.09 million [EPS: Rs0.35] for the half-year ended December 31, 2024, reflecting a 50.5% decline from Rs365.81m [EPS: Rs0.97] in the same period last year (SPLY).

The company’s revenue grew 2.72% to Rs5.41 billion, compared to Rs5.27bn in SPLY.

However, direct costs increased by 9.04%, leading to a 15.4% drop in gross profit to Rs1.15bn.

Administrative and distribution costs surged 9.73% to Rs748.56m, while exchange losses were significantly reduced to Rs0.33m from Rs89.2m.

Other income and expenses saw a sharp decline, posting a net expense of Rs16.52m compared to an income of Rs8.17m in SPLY.

As a result, the company’s operating profit fell 35.35% to Rs387.85m.

Finance costs decreased 25.85% to Rs58.67m.

Profit before taxation and levy stood at Rs329.17m, down 36.79%, while a newly imposed levy of Rs54.74m further lowered pre-tax profits to Rs274.44m, marking a 47.3% decline.

Tax expenses dropped 39.76% to Rs93.34m, bringing the company's effective tax rate down.

Profit attributable to owners of the holding group declined by 63.65% to Rs118.99m, while non-controlling interests rose 61.5% to Rs62.1m.

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