Workforce cuts impact PTCL bottom line, as profits drop by 74.8%

11 Feb 2015

Fixed line incumbent Pakistan Telecommunications Company Ltd (PTCL), which operates in the mobile sector under the Ufone brand, has booked a 74.8% decline in net profit in the year ended 31 December 2014. ProPakistani writes that the operator registered profit of PKR15.752 billion (USD154.45 million) in 2013, but that figure fell to PKR3.966 billion in 2014 due in part to a voluntary separation scheme (VSS) which cost the telco PKR8.174 billion. Adding to the decline, total revenues dipped from PKR131 billion to PKR129 billion whilst costs expanded by 5.5% to PKR88.72 billion. According to recent statistics published by the sector watchdog, the Pakistan Telecommunication Authority (PTA), Ufone ended 2014 with 21.956 million wireless subscribers – down from 23.001 million in September 2014 and 24.352 million at end-June 2014 – of which 1.953 million were 3G users.