- Operational Performance remained robust, Net profitability increased by 10%
- Increased Finance Cost from Ufone, dragged the profit in 2nd Quarter
Pakistan Telecommunication Ltd (PTCL) has announced Half Year Financial Results for 2019 result where Net Profit clocked in at Rs. 2.34 billion (EPS: Rs. 0.46), up 10%YoY. Contrary to past trend, PTCL didn’t announce any dividend with Financial Results of 1HCY2019. The PTCL Annual Financial Report/Statements for 2019 highlights enhanced operational performance of PTCL during the period.
PTCL increased its consolidated revenue by 9% to Rs. 66.3 billion during Half-year ended June 30, 2019. The gross margins remained stagnant at 27%. The prime reason for the better performance was higher revenue from its subsidiaries Pak Telecom Mobile Limited (Ufone) and U Micro Finance Bank Ltd.
During the quarter, PTCL was able to lift its Broadband userbase which resulted in increased operating performance of PTCL on a stand-alone basis. Growing demand for data bodes well for revenues from the Broadband segment.
Strong Balance sheet and Liquidity Position
PTCL’s EBITDA margins remained stable as no major CAPEX was carried out. The liquidity of the company remained strong as significant cash and liquid investments were available along with a healthy generation of cash flows from its operations. PTCL’s liquidity profile remained favourable as consistent cash collection has resulted in low utilization of short-term borrowings for working capital management and build-up of liquidity buffer on the balance sheet. Total Liquid assets of the company stand at one-tenth of the total asset and two-third of total consolidated group liabilities. PTCL Financial Statement for 2019 depicts strong operating performance during the year. The PTCL Annual Report for 2019 PDF will highlight full-year performance and will highlight key operational ratios.
Ufone (Pak Telecom Mobile Limited) Foreign Debt dragging PTCL Financial Performance 2019
Although Ufone has increased its market share to 14% with increasing revenue, it’s financial performance is dragging owing to foreign debt on its balance sheet. The Finance Cost on loan is increasing as Currency Depreciate, leading to increased Interest payments in Rupee term. This is leading to lower profitability of Ufone and eventually lower consolidated profit for PTCL.
U Microfinance Bank bringing in Growth
U Microfinance profitability remained on an upward trajectory as it witnesses significant growth in financing portfolio
while Interest spreads also increased.
|Three Months Ended||Six Months Ended|
|(Rupees in thousand)||30-June-2019||30-June-2018||30-June-2019||30-June-2018|
|Cost of services||(24,332,329)||(22,621,235)||(47,912,636)||(44,367,502)|
|Administrative and general expenses||(5,005,594)||(4,535,348)||(9,864,077)||(8,969,881)|
|Selling and marketing expenses||(1,612,764)||(1,576,002)||(3,236,258)||(3 ,324,707)|
|Profit before tax||631,815||963,696||3,513,835||2,516,569|
|Provision for income tax||(287,046)||151,531||(1,171,152)||(378,479)|
|Profit for the period||344,769||1,115,227||2,342,683||2,138,090|
|Earnings Per Share||0.07||0.22||0.46||0.42|
PTCL Annual Report, Financial Statement 2019 PDF Download
PTCL Annual Report 2019 contains details of Financial Year operations and PTCL Financial Statements of 2019 including segment-wise details of the Income Statement, Balance sheet, and Cash Flow Statement. PTCL Annual Report in PDF for 2019 can be downloaded from below mentioned link.