PTCL projects over Rs9bn profit for next financial year -Pakistan Press Foundation (PPF)

Paksitan Press Foundtion

PTCL projects over Rs9bn profit for next financial year

By Aftab Maken

ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL) has projected over Rs9 billion profits for the next financial year without a single penny of investment for facilitating its over 4.5 million subscribers, according to a budget document of the company made available to The News on Monday.

The PTCL, privatised in 2006 and handed over to the UAEís Etisalat, will heavily dependant on its revenues from the PSTN service with budget estimates of Rs22.77 billion during the FY2010/11, the document said.

Despite increase in its revenue, interestingly the companyís allocation for the provision of taxes will nearly remained unchanged at Rs4.913 billion against last year’s payment of Rs4.970 billion.

Of the total net revenue of Rs60.39 billion for FY2010/11 against last year’s collection of Rs54.15 billion, the company will have billions of rupees under its services, including MM & BB, international business, wireless (WLL), Evo, carrier and wholesale and corporate services.

Further break up of net revenue includes Rs8.086 billion from MM & BB, Rs7.241 billion of international business, Rs2.284 of WLL, Rs1.230 billion of Evo, Rs11.412 billion of carrier and wholesale and Rs7.368 billion from corporate services, it said.

Besides, the company is also receiving non-operating income, including Rs2.685 billion under the head of return on deposits and investments, Rs182 million of late payment and Rs176 million under the head of miscellaneous.

The operating expenses of the PTCL also amounts to Rs49.014 billion for FY2010/11 against last year’s expenses of Rs44.382 billion, an increase of 10 per cent, while there is no mention of any investment for improving the quality of the service and introduction of new technologies, the document said.

Of the total operating expenses, Rs12.351 billion has been allocated for depreciation and amortisation, Rs11.132 billion for employment costs, Rs5.799 billion for foreign operator’s cost, Rs2.429 billion for cable and satellite charges, Rs4.062 billion for fuel and power, Rs1.8 billion for doubtful debts, Rs2.705 billion for repairs and maintenance, Rs1.701 billion for subscriber’s acquisition cost, Rs3.014 billion for licences and regulatory charges, Rs1.317 billion for marketing expenses, Rs469 million for rent, rates and taxes, Rs771 million for USF and Rs1.464 billion under the head of other expenses.

Of the medical expenses, it said that the company has earmarked only Rs400 million under the head of medical expenses for 29,381 employees of the company and only Rs134 million as productivity incentive for the employees.

The PTCL also continues its downsizing policy of employees, including senior management to mid and junior managers and it will lay off another 83 employees during the financial year 2010/11.

The total lay off employees include two posts of executive vice presidents, five posts of general managers, five posts of senior managers and mangers each, 17 posts of assistant mangers, management trainees and 49 posts of non-management trainees, it added.
Source: The News