Pakistan Telecommunication Company Limited (PTCL) has reported a substantial loss of Rs 4.79 billion for the first quarter of 2024, according to the financial results released on Thursday. This news comes amidst a challenging economic landscape and evolving market dynamics.
The consolidated financial results submitted to the Pakistan Stock Exchange (PSX) reveal that PTCL’s after-tax loss for the first quarter of 2024 stands at Rs 4.79 billion, showing a marginal improvement from the loss of Rs 5.72 billion reported in the corresponding quarter of the previous year. Despite efforts to mitigate losses, the company continues to grapple with financial challenges.
The board of directors of PTCL convened on April 18, 2024, and in light of the financial performance, recommended no entitlement for shareholders. This decision reflects the need to navigate the current financial constraints and prioritize strategies for sustainable growth.
Revenue for the first quarter of 2024 amounted to Rs 49.20 billion, marking an increase from Rs 43.19 billion reported in the same period last year. However, the cost of services surged to Rs 40.85 billion, compared to Rs 34.05 billion in the previous year’s corresponding quarter. Consequently, the gross profit for the quarter ended March 31, 2024, decreased to Rs 8.36 billion, down from Rs 9.14 billion reported in the same quarter of the previous year.
Administrative and general expenses witnessed a notable rise, reaching Rs 6.78 billion compared to Rs 5.58 billion in the previous year. Similarly, selling and marketing expenses recorded an uptick, totaling Rs 2.62 billion as against Rs 2.42 billion reported in the corresponding quarter.
Under the category of other income, PTCL reported Rs 6.94 billion, showing a decline from Rs 14.67 billion in the previous year’s quarter. This reduction in other income further impacted the overall financial performance of the company.
Income tax payment for the quarter ended March 31, 2024, amounted to Rs 2.48 billion, reflecting an increase from Rs 2.17 billion reported in the corresponding quarter of the previous year. The rise in income tax payment adds to the financial burden faced by PTCL amidst ongoing operational challenges.
The telecommunications sector in Pakistan is witnessing rapid transformation, driven by technological advancements and changing consumer preferences. In this dynamic environment, PTCL faces the imperative to adapt its strategies to remain competitive and address the evolving needs of its stakeholders.
As PTCL navigates through these challenges, stakeholders will closely monitor the company’s performance and strategic initiatives aimed at achieving sustainable growth and profitability in the long run.
