The significant improvement in gross margins was primarily because of a 1.6% drop in cost of sales to Rs20.41 billion. PHOTO: FILE
KARACHI: Pakistan Telecommunication Company Limited (PTCL) has announced consolidated earnings of Rs4.35 billion in the first quarter of calendar year 2014, up 31% from Rs3.33 billion in the same quarter last year.
According to financial results released on Tuesday, PTCL’s topline increased 3.7% to Rs33.37 billion while gross margins improved 331 percentage points to 38.8%, said Topline Securities in a report.
The significant improvement in gross margins was primarily because of a 1.6% drop in cost of sales to Rs20.41 billion.
“We attribute the 31% increase in earnings to surge in broadband subscribers with a major increase in EVO wireless segment. Moreover, finance cost dropped 64% to Rs390 million in the first quarter,” it said.
In a press release, PTCL commented that the strong first-quarter results came on the back of growing fixed and wireless broadband business.
The company’s cash flow remained healthy and stable due to the consistent growth in the subscriber base and strong market position, it said.
“The solid results again demonstrate our ability to grow business and perform for our customers and shareholders,” said PTCL President and CEO Walid Irshaid.
“Despite fierce competition in the telecom market, we have continued to pursue our goals with a commitment.”
Published in The Express Tribune, April 23rd, 2014.
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@Khan: Dear Khan, Agree with your comments. We are using PTCL Broadband at home and very unhappy due to frequent outages, but Kya krein Pakistani hain, compromise kernay ki aadat ho gai hai. Infact PTCL is a Big Player and have wider coverage so does their Aggressive marketing, all that makes it a Telecom Giant in Pakistan. Worldcall telecom is a second Good Option, it is recently acquired by Omantel and working rigourously to Revive Network quality and customer service. For PTCL I have have an Opinion that most of its workers have same Working style similar to Govt. erra, not much improvement after Privatization. Wateen, Wi-tribe Qubee are also offering better internet.
@Khan: The reasons are as follows:
Heavy spending on advertising. Largest nationwide network by virtue of it's land line infrastructure. PTCL is part of the duopoly on international bandwidth in Pakistan. The other company is Transworld. Together they keep international bandwidth expensive for other ISPs.It's interesting that Pakistani internet forums are chock full of horror stories about PTCL. Despite this people continue to recommend PTCL to their friends and family and they in turn seem happy to be led to the slaughter.
One wonders how a company with arguably the worst customer service setup can post such growth results. Recently switched back to Worldcall from PTCL, and internet use is a pleasure again rather than the constant pain that is PTCL DSL.