Karachi, February 12, 2025 – Pakistan Telecommunication Company Limited (PTCL), one of the country’s leading telecom operators, has reported a dramatic 48.56% decline in its profit for the fiscal year 2024. According to the financial results disclosed to the Pakistan Stock Exchange (PSX) on Wednesday, PTCL’s net profit after tax for the year plummeted to Rs 4.83 billion, down from Rs 9.39 billion in 2023. The steep decline in profitability highlights the financial pressures the company has faced amid rising operational costs and other economic challenges.
The company also reported a decrease in earnings per share (EPS), which dropped to Rs 0.95 in 2024 compared to Rs 1.84 per share in the previous year. Despite this fall in profit, PTCL managed to show some growth in its revenue, yet this was not enough to offset the increasing expenses that negatively impacted its bottom line.
On a consolidated basis, PTCL recorded a substantial loss of Rs 14.39 billion in 2024, a slight improvement over the previous year’s loss of Rs 16.73 billion. This resulted in a loss per share (LPS) of Rs 2.82 for 2024, compared to Rs 3.28 in 2023. These figures reflect PTCL’s struggle to turn around its financial situation, despite a robust increase in revenue.
For the year 2024, PTCL’s total revenue surged by more than 16%, reaching Rs 219.78 billion, up from Rs 188.67 billion in 2023. This revenue growth, primarily driven by its telecom services, demonstrates the company’s ability to maintain a strong market presence. However, the rising cost of revenue also posed a significant challenge, with expenses growing by more than 11% to Rs 162.38 billion in 2024, compared to Rs 145.93 billion the year before.
As a result of this, PTCL’s gross profit experienced a substantial year-over-year increase of over 34%, reaching Rs 57.4 billion in 2024. The company’s gross profit margin improved to 26.1%, up from 22.7% in 2023. While this indicates improved efficiency in generating profits from revenue, it was not sufficient to cushion the financial blows from escalating costs and losses in other income streams.
One of the major contributors to PTCL’s weakened financial performance was the rise in operating expenses, which surged by 27%, reaching Rs 51.3 billion in 2024, compared to Rs 40.5 billion in 2023. This spike in operating costs significantly affected the company’s operating profit, which increased to Rs 6.12 billion in 2024, up from Rs 2.3 billion in the previous year.
Despite the rise in gross profit, PTCL’s other income dropped by more than 16%, amounting to Rs 25.6 billion in 2024, down from Rs 30.4 billion in 2023. This decline in other income was further compounded by a massive increase in financial costs, which soared to Rs 52.6 billion in 2024, exacerbating the company’s financial woes.
The company’s pre-tax loss for 2024 was recorded at Rs 20.9 billion, compared to Rs 22.9 billion in the previous year. This represents a slight improvement but underscores the continuing financial struggles faced by PTCL, which is still recovering from various economic pressures and high operational expenses.
PTCL, established on December 31, 1995, remains a vital player in Pakistan’s telecommunications sector. It provides both domestic and international telephone services and operates an extensive network of communication facilities across the country. Despite the financial setbacks in 2024, PTCL continues to serve as a cornerstone of Pakistan’s digital connectivity, playing a critical role in the nation’s telecom and broadband landscape.
While PTCL faces mounting financial challenges, its ability to remain a key industry player is a testament to the company’s strategic importance in Pakistan’s ongoing digital transformation. As the company works to navigate these challenges, the telecom industry will be watching closely to see if PTCL can regain its profitability and continue to innovate in an increasingly competitive market.