WorldCall’s Financial Woes Deepen as Auditors Raise ‘Significant Doubt’ Over Future

WorldCall Telecom Limited’s financial troubles have deepened, with its independent auditors warning of “significant doubt” over the company’s ability to continue as a going concern despite a nearly one-third reduction in its after-tax loss during the first half of 2026.

According to the company’s half-yearly financial report for the six months ended June 30, WorldCall’s accumulated losses rose to Rs 21.58 billion, up from Rs 19.01 billion at the end of December 2025. Its current liabilities also exceeded current assets by Rs 8.4 billion.

The company reported a consolidated loss after tax of Rs 337 million during the period, compared with Rs 490 million in the corresponding period last year.

While the auditors found no indication that the interim financial statements had not been prepared in accordance with applicable accounting standards, they drew attention to WorldCall’s precarious financial position.

They said stagnant revenue growth, contingencies, and commitments had created material uncertainties that cast significant doubt on the company’s ability to continue as a going concern. The auditors cautioned that WorldCall may be unable to realize its assets and discharge its liabilities in the normal course of business.

Despite the financial pressure, the company recorded some improvement in its operating performance. Consolidated revenue increased to Rs 3.09 billion from Rs 2.78 billion a year earlier, while EBITDA more than doubled to Rs 209 million from Rs 103 million.

Finance costs also declined to Rs 205 million from Rs 236 million. However, depreciation and amortization expenses of Rs 302 million, along with finance costs and other charges, continued to weigh on the bottom line.

Licensing disputes add to financial pressure

WorldCall is also dealing with unresolved regulatory matters that have added to the uncertainty surrounding its future.

The company’s telecommunications licenses for Long Distance and International (LDI) and Fixed Local Loop (FLL) services expired in July 2024. Renewal of the FLL licenses remains pending before the Islamabad High Court, while the Pakistan Telecommunication Authority has renewed the LDI license subject to certain conditions.

WorldCall has challenged some of those conditions before the Sindh High Court, which has restrained the PTA from taking coercive measures against the company pending adjudication.

The company has identified approximately Rs 4.24 billion in liabilities and disputed amounts relevant to its going-concern assessment. These include around Rs 2.55 billion owed to PTA, Rs 557 million in claims challenged by the relevant parties, Rs 1.03 billion in contract liabilities and Rs 99 million in tax provisions. WorldCall maintains that some of these amounts are not immediately payable.

Providing a degree of financial support, WorldCall Services (Private) Limited, the company’s majority shareholder, has assured continued cash-flow support to the telecom operator.

Meanwhile, WorldCall is seeking to reverse its fortunes through expansion into broadband and technology services. The company has initiated a 200,000-connection low-cost broadband project across 20 cities while expanding its fiber network and access infrastructure.

It is also pursuing technology ventures, including CADNZ, a customer relationship management and contact-center solution initially targeting small and medium-sized banks in the United States, as well as new engagements involving artificial intelligence and big data technologies.

The company has also launched its “Giggle Academy” initiative to provide underserved communities with digital learning tools through its fiber-to-the-home network.

However, with accumulated losses now exceeding Rs 21.5 billion, current liabilities substantially higher than current assets and key licensing matters still unresolved, WorldCall faces a difficult road ahead. Its planned expansion will need to generate sustainable earnings quickly if the company is to ease the financial pressure highlighted by its auditors.

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