Pakistan Telecom Net Income Rises as Broadband Business Grows
Pakistan Telecommunication Co. (PTC), the country’s biggest phone service provider, reported a 36 percent rise in annual net income because of higher revenue from broadband services.
Net income rose to 11.4 billion rupees ($120 million) or 2.24 rupees a share in the 12 months ended June 30, from 8.41 billion rupees or 1.65 rupees a year earlier, the Islamabad- based company said in a statement to the stock exchange today. Revenue increased 8 percent to 110.8 billion rupees.
“Their broadband business grew this year because they offered more products,” said Ayub Ansari, a research analyst at AKD Securities Ltd. in Karachi.
The company’s focus on high-speed Internet and television services has helped boost broadband customers to almost one million contributing about 20 percent to total sales, Walid Irshaid, chief executive, said in October. Pakistan Telecommunications has faced competition from telecom providers including Telenor ASA and China Mobile Communications Ltd. since 2004 when the government allowed the entry of private operators, ending a monopoly.
The company’s broadband business grew 44 percent from a year earlier, Ansari said.
Pakistan Telecommunication’s shares fell by the daily limit of 5 percent to 18.63 rupees because the company skipped a dividend payment for the first time since the year ended June 2008, Ansari said. The shares have risen 81 percent this year compared with a 38 percent gain in the benchmark KSE100 index.
Emirates Telecommunications Corp., the United Arab Emirates state-owned phone company, won management control of Pakistan Telecom in April 2006 after buying a 26 percent stake in the company for $2.6 billion.
To contact the reporter on this story: Khurrum Anis in Karachi at email@example.com