Karachi, February 13, 2024 – Pakistan Telecommunication Company Limited (PTCL) revealed on Tuesday that its annual losses for the calendar year 2023 widened to Rs 14.15 billion, as reported in the financial statement shared with the Pakistan Stock Exchange (PSX).
This marks a notable increase from the losses incurred in the preceding year, which amounted to Rs 10.45 billion.
The announcement followed a meeting of the company’s board of directors on February 13, 2024. Despite efforts to address financial challenges, the board recommended no cash dividend, bonus shares, or right shares for the shareholders in the wake of the widened losses.
According to the consolidated financial results, PTCL reported a rise in revenue to Rs 190.61 billion for the year 2023, compared to Rs 151.58 billion in the previous year. However, the surge in the cost of services was notable, reaching Rs 152 billion for the year under review, a significant increase from Rs 120 billion in calendar year 2022.
Despite the increase in revenue, the gross profit margin for the company stood at Rs 38.63 billion for the year 2023, showing a moderate increase from Rs 31.44 billion in the last year. This indicates the impact of escalating costs on the overall financial performance.
Administrative and general expenses were reported at Rs 25.84 billion, compared to Rs 20.46 billion in the previous year. Additionally, selling and marketing expenses rose to Rs 10.72 billion, marking an increase from Rs 8.54 billion. These figures suggest rising operational costs, contributing to the overall financial strain.
A significant factor contributing to the widened losses was the notable surge in finance costs and other expenses, which reached Rs 51.72 billion in 2023 compared to Rs 29.73 billion in the previous calendar year. This substantial increase in financial obligations reflects the challenges faced by PTCL in managing its debt and other monetary commitments.
The telecom industry, like many sectors, has faced dynamic challenges, including technological advancements, changing consumer preferences, and competitive market dynamics. PTCL’s financial performance in 2023 reflects the broader landscape of the telecommunications industry, where companies must navigate evolving market conditions and adapt to emerging trends to remain competitive.
As PTCL addresses its financial position, industry analysts will closely scrutinize the company’s strategies to recover and stabilize its financial standing in the coming years. The telecommunications sector will continue to evolve, and companies like PTCL will need to demonstrate resilience and adaptability to thrive in the rapidly changing landscape.
