At the end of 3rd quarter of 2016, the net profit of Pakistan Telecommunication Company Limited (PTCL) has increased 42% as compared to last year during the same duration. A meeting of Board of Directors was held on 13th October 2016 in Islamabad during which the financial results for the last 9 months till 30th September 2016 were presented.
The profit of company made during the third quarter was the main reason behind improvement in financial numbers. During this period, the company gained profit of Rs. 876 million as compared to the previous year which was Rs. 371 million during this duration.
The revenue of the group was Rs. 88.8 billion while it reduced expenses by 3% due to effective cost optimization measures which earned the company net profit of Rs. 3.9 billion. Growth in DSL broadband revenue helped the company to increase its revenue for the period with Rs. 54.3 billion. During this period, the net profit became Rs. 7.6 billion due to reduction of company’s operating expenses by 6%.
The analysts say that the performance of Ufone, subsidiary of PTCL, is the main reason behind improvement in this profit as it maintained its earning despite high competition from other companies in the market. Apart from that, the profit of the group also increased highly due to effective cost saving measures on its operations.
So far in 2016, the expenses for administration, marketing and selling remained Rs. 18.3 billion while they stood at Rs. 19.8 billion during the same time period of previous year. In the three quarters of 2015, the finance cost remained Rs. 4.23 billion while it reduced to Rs. 2.74 billion in the three quarters of current year.
The new management took over the office in the beginning of 2016 and its change of policy is evident from the overall performance of the company. Though, the policy of operational management is important for overall performance of company and group but PTCL has to introduce new and innovative features in future in order to achieve sustained performance.