PTCL profit surges despite drop in revenue

ptcl-profit-surges-despite-drop-in-revenue

PTCL profit surges despite drop in revenue KARACHI: Consolidated earnings of Pakistan Telecommunication Company (PTCL) for the first nine months of 2016 amounted to Rs3.97 billion, up 42 per cent on a year-on-year basis.

In a securities filing on Thursday, the company said its revenues stood at Rs88.78bn for January-September, down 2pc from a year ago.

According to Topline Securities, the financial result was in line with analysts’ expectations. Improving revenues of Ufone, a group subsidiary, helped improve the consolidated revenues of PTCL in July-September that clocked up at Rs29.8bn, it said.

“However, PTCL’s core business segments remained flat, we believe,” the report said while referring to a 5pc decline in evolution data optimised subscribers along with a flat trend in the digital subscriber line (DSL) segment.

Moreover, growth in fixed line and wireless local loop segments has also been kept in check, it added. “We believe this is due to the proliferation of mobile broadband,” the report noted.

The stock price of PTCL lost 1.85pc to close at Rs17.95 per share on Thursday.

Source: http://www.dawn.com/news/1289764/ptcl-profit-surges-despite-drop-in-revenue

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