PTCL reports significant losses of Rs 6.3 billion for Q3 2024

Pakistan Telecommunication Company Limited (PTCL) has reported huge losses of Rs6.3 billion during the three months ended September 30, 2024. This is an improvement from the Rs2.8 billion loss seen during the corresponding period of the previous year, according to the latest consolidated financial results released to the Pakistan Stock Exchange (PSX) on Tuesday.

Despite a rise in revenue and gross profit, the company’s losses continued to grow. PTCL’s total revenue increased by around 11% to Rs55.56 billion in Q3 2024 from Rs50.09 billion in the same period of the previous year. However, the cost of revenue also rose more than 14% to Rs 42.6 billion from Rs 37.4 billion in the same quarter of the previous year.

Resultantly, PTCL’s gross profit has not shown much improvement and has in fact increased by only over 1% year-on-year to Rs.12.9 billion, the gross profit margin has decreased to 23.2 % from 25.4% in the previous year.

Operating expenses increased to Rs13.1 billion from Rs10.4 billion in the same period last year, which resulted in an operating loss of Rs240 million against an operating profit of Rs2.3 billion in Q3 2023. Further, other operating income reduced to Rs2.9 billion from Rs6.3 billion in the prior year.

The finance costs of PTCL also increased to Rs 12.1 billion in Q3 2024 which amounts to a pre-tax loss of Rs 9.4 billion as compared to the same period of last year Rs 4.1 billion.

PTCL was established on December 31^st, 1995, and is one of the leading telecommunications service-providing organizations of Pakistan which owns and manages domestic as well as international communication networks.

It also has a controlling stake in Ufone, a mobile operator with more than 20 million customers, and is a joint venture with Etisalat, which operates under license from the Government of Pakistan, the largest shareholder.