PTCL profit slumps as floods and fire affect business

17 Oct 2014

Fixed line incumbent Pakistan Telecommunication Company Ltd (PTCL) Group has booked revenues of PKR99.3 billion (USD965.165 million) for the nine months ended 30 September 2014, down slightly from PKR100.3 billion a year earlier. Meanwhile, net profit for the period fell by 30.3% to PKR7.8 billion from PKR11.2 billion. The company attributed the slump to a ‘surge in interest costs of long-term borrowing obtained by Ufone for funding its 3G spectrum and licence renewal.’ Also impacting the group’s profitability was a fire at an exchange in Lahore in September which disrupted 25,000 internet connections and 45,000 telephone lines. Damage from the fire was calculated to have cost the firm around PKR776 million.

PTCL’s president and CEO Walid Irshaid commented in a press release that: ‘Despite the setback due to the recent floods and the fire incident at one of our facilities in Lahore, the dedication and resilience of our staff to restore services in flood affected areas and to resurrect the entire facility in a matter of days demonstrates our commitment to our customers. Our profitable third quarter results once again show our ability to work with diversified product line aligned with market demand.’