Pakistan Telecommunication Company Limited (PTCL) is going to announce its results for year ended December 31, 2014 on 10th February 2015. Below we are presenting our result expectation.
Profitability growth to decline
On unconsolidated basis, PTC is expected to post bottom line of Rs 10.65 billion (EPS:Rs 2.09) in CY14 compared to Rs 12.69 billion (EPS: Rs 2.49) in CY13, depicting drop of 16%% mainly driven by lower termination rates for incoming calls. In 4QCY14, earnings to rise by 10% QoQ to Rs 1.91 billion (EPS: Rs 0.38) versus Rs 1.74 billion (EPS: Rs 0.34) in 3QCY14 mainly due to absence of disposable of assets. Furthermore, we expect final dividend of Rs 1/share totaling to Rs 2/share for CY14.
Revenue to consolidate
Topline is expected to increase by 2% to Rs 82.68 billion against Rs 80.93 billion in CY13 due to expansion in Broadband. However, incoming calls likely to decline by 28% YoY to average 396mn mins/month in CY14 versus 551mn mins/month in CY13 due to users shifting towards other software. The cost of services likely to higher by 6% to Rs56.35 billion in CY14 from Rs 53.14 billion during CY13. As a result of lower cost of services, gross profit likely to drop by 5% to Rs 26.32 billion in CY14 against Rs 27.79 billion in CY13. The gross margin likely to fall at 31.8% in CY14 against 34.3% in CY13. Other operating income likely to increase by 8% to Rs 4.56 billion against Rs 4.21 billion due to higher return on bank deposits owing to surge in investments.

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