PTCL Suffers Major Setback with Rs6.3 Billion Loss in Q3 2024 Despite Revenue Growth

In a recent development, Pakistan Telecommunication Company Limited (PTCL) reported a staggering loss of Rs6.3 billion for the three months ending September 30, 2024. This highlights an abrupt increase from the Rs2.8 billion loss in the same quarter last year, underscoring the company’s growing financial challenges.

PTCL’s financial results, released to the Pakistan Stock Exchange (PSX), disclose a complex situation. On one hand, PTCL witnessed its revenue increase by 11%, reaching Rs55.56 billion in Q3CY24 compared to Rs50.09 billion in the corresponding quarter of 2023. However, despite the higher revenue, the company floundered to contain rising costs, which greatly affected its bottom line.

PTCL Faces Financial Struggles in Q3 2024 with Losses Doubling from Last Year

PTCL’s revenue increase was outpaced by the surge in costs. The cost of revenue increased by over 14%, climbing from Rs37.4 billion last year to Rs42.6 billion in Q3CY24. Due to that, the company’s gross profit showed a marginal 1% year-on-year (YoY) increase, reaching Rs12.9 billion. This deciphers to a profit margin of 23.2%, down from 25.4% in the same period last year, pointing to a shrinking efficiency in operations.

Another major factor contributing to the losses was operational expenses. PTCL’s operating expenses rocketed to Rs13.1 billion, marking a 26% increase from Rs10.4 billion in the previous year. Therefore, PTCL reported an operating loss of Rs240 million for the quarter, compared to an operating profit of Rs2.3 billion in Q3 2023.

One of the pivotal drivers behind PTCL’s increasing losses was the steep rise in finance costs, which increased to Rs12.1 billion during Q3CY24. This highlights a noteworthy increase and contributed to the company’s overall pre-tax loss of Rs9.4 billion, more than double the Rs4.1 billion loss recorded in the same period last year. Meanwhile, the PTCL’s other income also dropped sharply, falling from Rs6.3 billion in Q3CY23 to Rs2.9 billion in the latest quarter.

Despite the challenging financials, PTCL remains a key player in the country’s telecom sector. However, with increasing operational and financial costs, the company faces substantial hurdles in reviving profitability in the coming quarters.

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