PTCL Reports Lower Profit
PTCL today announced it’s financial results and said that company’s net profit for year 2010-11 remained Rs. 7.43 billion – 20 percent lower than Rs. 9.15 billion during the same period previous year.
Earning per share (EPS) of the group was Rs. 1.65 of which EPS for PTCL was Rs. 1.46. No dividend was announced as PTCL had already declared an interim cash dividend of Rs. 1.75 per share during Q3 2010-11, the press release said.
PTCL’s reported three percent YoY declined in revenues to stand at Rs 55.25 billion compared with Rs. 57 billion in same period last year, primarily due to decline in landline subscription base.
Operating costs on the other hand rose by 9 percent YoY to Rs 41.8 billion – due to increasing cost for salaries. In addition company pursued an aggressive advertising campaign, selling and marketing expenses rose too by 6 percent YoY.
Other income during FY11 increased by 53 percent to Rs 7.8 billion as compared to Rs 5.1 billion in FY10 primarily on account of higher returns from bank placements and better dividend from Ufone.
Despite increasing product portfolio PTCL is continuously struggling with profits since it was privatized in 2005, amid declining margins and tough competition from cellular companies and internal managerial conflicts.