Karachi, February 12, 2025 – Pakistan Telecommunication Company Limited (PTCL) has reported a significant decline in profitability, with a staggering 48.56% drop in profit after tax for the year 2024.
According to the financial statement released by PTCL to the Pakistan Stock Exchange (PSX) on Wednesday, the company posted a net profit of Rs 4.83 billion in 2024, a sharp decrease compared to Rs 9.39 billion recorded in the previous year.
PTCL declared earnings per share (EPS) of Rs 0.95 for 2024, significantly lower than the Rs 1.84 per share reported in the prior financial year.
On a consolidated basis, PTCL reported heavy losses amounting to Rs 14.39 billion in 2024, compared to a loss of Rs 16.73 billion in 2023. This translates into a loss per share (LPS) of Rs 2.82 for 2024, down from Rs 3.28 recorded in the previous year.
Despite an increase in revenue and gross profit, PTCL struggled to maintain profitability. The company’s total revenue surged over 16% to Rs 219.78 billion in 2024, up from Rs 188.67 billion in 2023. However, the cost of revenue also increased, rising over 11% to Rs 162.38 billion in 2024, compared to Rs 145.93 billion in 2023.
As a result, PTCL’s gross profit saw a substantial increase of over 34% year-over-year, reaching Rs 57.4 billion in 2024. The company’s gross profit margin improved to 26.1% in 2024 from 22.7% in 2023.
However, operating expenses surged to Rs 51.3 billion, a 27% rise compared to Rs 40.5 billion in 2023. Consequently, PTCL recorded an operating profit of Rs 6.12 billion in 2024, up from Rs 2.3 billion in 2023.
In contrast, PTCL’s other income declined by over 16%, amounting to Rs 25.6 billion in 2024, compared to Rs 30.4 billion in the previous year. Additionally, financial costs skyrocketed to Rs 52.6 billion in 2024, significantly impacting the company’s bottom line.
As a result of these financial challenges, PTCL posted a pre-tax loss of Rs 20.9 billion in 2024, compared to Rs 22.9 billion in 2023.
Established on December 31, 1995, PTCL remains a cornerstone of Pakistan’s telecommunications sector. The company provides domestic and international telephone services and operates an extensive network of communication facilities across the country. Despite facing financial headwinds, PTCL continues to play a crucial role in Pakistan’s digital connectivity landscape.