PTCL Group Posts Significant Q3 Loss Despite Revenue Growth
The PTCL Group has reported a notable Rs6.3 billion loss for the third quarter of 2024, marking a sharp rise from the Rs2.3 billion loss recorded during the same period last year. Over the first nine months of 2024, the company’s total losses escalated to Rs15.3 billion, a significant increase from Rs10.8 billion in the corresponding period of 2023.
Escalating Costs and Declining Income
PTCL Group’s financial results reveal that while the company’s revenue grew, it faced increasing costs and declining income. The cost of services for Q3 2024 rose to Rs42 billion, up from Rs37 billion in Q3 2023. Furthermore, the group’s other income plummeted to Rs2.8 billion, a substantial drop from the Rs6.3 billion it reported during the same quarter last year.
The company’s financial costs remained high, standing at Rs12.06 billion in Q3 2024, only slightly lower than the Rs12.7 billion from Q3 2023. This combination of rising costs and declining income has contributed to the significant losses.
Revenue Growth Amid Financial Challenges
Despite these financial challenges, PTCL Group has continued to report strong revenue growth. The company’s revenue for the first nine months of 2024 grew by 15.3% year-on-year (YoY), reaching Rs160.6 billion. This increase was driven by key sectors such as fixed broadband, mobile data, and wholesale & business solutions.
PTCL’s own performance was also robust, with the company achieving Rs79.5 billion in revenue for the first nine months of 2024, reflecting an 11.1% YoY increase. PTCL posted an operating profit of Rs8.2 billion, a 27.6% improvement compared to last year, and a net profit of Rs1 billion.
Broadband and Ufone 4G Drive Growth
The fixed broadband business saw 20.4% YoY growth, while Flash Fibre services experienced an impressive 111.5% YoY rise. With over 600,000 fibre-to-the-home (FTTH) subscribers, PTCL remains the leading FTTH provider in Pakistan.
Additionally, Ufone 4G, a part of the PTCL Group, posted a 25.6% YoY revenue increase, driven by network expansion and enhanced digital engagement.
Conclusion
Despite increased revenue and positive growth in key areas, PTCL Group’s significant losses highlight the challenges the company faces in controlling costs and improving profitability.