Pakistan Telecommunication Company Limited (PTCL) posted significant losses of Rs6.3 billion for the three-month period ending September 30, 2024, according to financial data shared with the Pakistan Stock Exchange (PSX). This marks a sharp rise compared to the Rs2.8 billion loss in the same period last year.
Despite an 11% increase in revenue, which surged to Rs55.56 billion from Rs50.09 billion in Q3 2023, PTCL struggled to contain rising costs. The company’s cost of revenue grew by over 14%, reaching Rs42.6 billion, up from Rs37.4 billion in the same period last year.
The company’s gross profit marginally improved by 1% to Rs12.9 billion, but its profit margin declined to 23.2% from 25.4% in the previous year. Operating expenses jumped by 26% to Rs13.1 billion, compared to Rs10.4 billion last year, resulting in an operating loss of Rs240 million, a stark contrast to the Rs2.3 billion operating profit in Q3 2023.
Additionally, PTCL’s other income plummeted to Rs2.9 billion from Rs6.3 billion, and its finance costs ballooned to Rs12.1 billion. This pushed the company’s loss before tax to Rs9.4 billion, compared to Rs4.1 billion in the previous year.
PTCL, a key player in Pakistan’s telecommunications industry, operates a wide range of services, including domestic and international telecommunication. It also owns Ufone, a major mobile operator with over 20 million customers. Etisalat holds a significant minority stake in the company, while the government of Pakistan retains the majority.