PTCL announces result for Oct to Dec quarter

KARACHI: Net profit of Pakistan Telecommunication Company Limited (PTCL) stood at Rs1.94 billion during October to December 2010 compared with Rs2.78 billion recorded in the same period last year.

PTCL, the largest broadband service provider, announced its financial results for the second quarter (October to December 2010) of fiscal 2011 on Thursday, according to a notice sent to the Karachi Stock Exchange.

“We remained focused on our strategy of positioning PTCL as a leading integrated telecom company, providing multiple solutions to business and household market segments and extending vital services to other telecom operators in the country,” said PTCL President Walid Irshaid while commenting on the results in a press release.

The company’s revenue fell seven per cent to Rs13.8 billion in the period under review compared with Rs14.95 billion in the same period last year.

Intense competition in the telecom sector continues to impact PTCL’s topline growth, said BMA Capital analyst Sana Bawani in a research note.

Income from non-core operations rose 15 per cent to Rs1.29 billion on the back of higher interest income on loans to a subsidiary and returns from investments in government papers.

Outlook

PTCL recently launched new landline packages aimed at customers with different telephony needs offering on-net minutes bundles and a monthly charge. However, these would be free of any line rent from subscribers, Bawani added.

Additionally, PTCL has completely revamped its broadband entertainment portal ‘PTCL Buzz’ to attract a larger client base. Also, the company has launched data centres in Karachi and Lahore for corporate and small to mid-sized enterprise (SME) customers.

The highlight

One of the major highlights of the first half of the current financial year was the launch of IMEWE submarine cable — a 13,000-kilometre fibre optic submarine cable travelling through three continents to interconnect South Asia to Western Europe, according to the company press release.

IMEWE along with PTCL’s previous two submarine cables namely SMW3 and SMW4 holds the status of a backbone for the country’s telecommunication infrastructure, the release added.