WorldCall losses shrink 88%

Company posts Rs1.26b loss, down from Rs10.63b

KARACHI: WorldCall Telecom Limited’s colossal losses shrank 88% to Rs1.26 billion for the year ended December 31, 2016 due to comparatively lower cost, asset stability and tax refunds.

According to a bourse filing on Wednesday, the company’s losses came down from Rs10.63 billion recorded in the year ended December 31, 2015. Accordingly, the loss per share fell to Rs1.72 in 2016 compared to Rs12.79 in 2015.

The significantly lower losses pushed WorldCall’s share price up by 20.47%, or Rs0.52, at Rs3.06 at the stock exchange. Additionally, it was the volume leader of the day with 55.14 million shares traded at the exchange.

During 2016, the company’s direct cost dropped to Rs2.75 billion with net revenue at Rs1.81 billion. Previously, the cost stood at Rs4.18 billion with net revenue at Rs2.19 billion.

Meanwhile, the firm said in its profit and loss account that it had recorded zero losses on account of impairment of assets during the year against a loss of Rs4.24 billion in the previous year.

WorldCall received a tax refund of Rs1.29 billion on its profit before tax. Last year, it paid Rs1.93 billion in taxes. Ironically, net revenue of the company dropped 17% to Rs1.81 billion from Rs2.19 billion. WorldCall also filed delayed financial results for the first, second and third quarters of the year ended December 31, 2016.

Published in The Express Tribune, May 11^th, 2017.

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