Competition in the telecom industry of Pakistan is growing and only those players can survive who offer better services in competitive prices. It appears that PTCL is unable to keep up with the growing competition, as the company reported a drop in profit of 31.4% in the first quarter of 2017 against the profit earned in the same quarter previous year.
Financial performance of PTCL has been revealed in the Board of Director’s meeting, held at Islamabad. The company’s profit dropped to PKR 2.145 billion in the first quarter of 2017 as compared to PKR 3.13 billion recorded in the same period last year. Moreover, the telephonic and internet service provider closed the financial year of 2016 with a drop in profit of 21%, which aggravated during the first quarter of 2017.
The decline in revenues is attributed to a huge drop in the earnings that the company derived under “Other Income”. PTCL’s earnings dropped to PKR 810 million in Q1 2017 from PKR 2.286 billion in Q1 2016. Also, the company’s operating income dropped by 5.3% in the first quarter of 2017. It decreased by PKR 2.43 billion during the Q1 2017 compared with PKR 2.57 billion during similar time frame of the previous year. The gross profit of the telecom giant plunged by 1.4% and it currently stands at PKR 5.36 billion by the end of first quarter.
Analysts believe that PTCL should focus on evolving its services as per the changing needs of the users, if the company wants to retain its position in the telecom industry.