Pakistan Telecommunication Company Limited (PTCL), the country’s leading integrated telecom and ICT services provider, has reported a net loss of Rs1.22 billion for the nine months ended September 30, 2025, reversing its profit of Rs999.98 million from the same period last year. The financial setback comes despite a notable increase in revenue and operational gains, signaling a challenging period shaped by one-time costs and lower non-operational income.
According to the company’s financial results disclosed to the Pakistan Stock Exchange (PSX), PTCL’s earnings per share turned negative at Rs0.24, compared to earnings of Rs0.20 per share during the same period last year. The company’s total revenue climbed 12.65% year-on-year to Rs89.6 billion, up from Rs79.53 billion in 2024. The growth was primarily driven by a strong performance in core telecommunication services, reflecting the company’s expanding footprint in fixed broadband, enterprise solutions, and digital connectivity offerings.
PTCL’s gross profit surged 30.33% to Rs26.21 billion, supported by improved cost efficiency as the cost of services rose at a moderate 6.67% to Rs63.39 billion. The telecom giant attributed this performance to better network utilization, optimized resource allocation, and growth in high-margin service segments.
However, the gains were partially offset by an increase in operational expenses. Administrative and general expenses rose 14.81% to Rs7.61 billion, while selling and marketing expenses climbed 12.65% to Rs4.05 billion, reflecting higher costs associated with customer acquisition, network expansion, and inflationary pressures. The impairment loss on financial assets remained relatively stable at Rs1.64 billion, showing a marginal decline of 0.57% from last year.
Operating profit, however, displayed robust growth—up 56.70% to Rs12.91 billion from Rs8.24 billion in the previous year—indicating strong underlying performance before the impact of extraordinary items.
The company’s bottom line was significantly affected by a one-time past service cost related to pension liabilities amounting to Rs5.89 billion. This non-recurring expense weighed heavily on overall profitability. Additionally, PTCL’s other income dropped sharply by 26.33% to Rs7.72 billion, down from Rs10.48 billion in 2024, due to lower returns on investments and fewer non-core income sources. Finance and other costs decreased 13.39% to Rs14.93 billion from Rs17.25 billion last year, reflecting reduced borrowing costs and improved cash flow management.
As a result, PTCL posted a loss before taxation of Rs197.64 million, compared to a pre-tax profit of Rs1.47 billion a year earlier. After accounting for higher taxation expenses of Rs1.02 billion—an increase of over 117% year-on-year—the company recorded a net loss of Rs1.22 billion for the nine-month period.
Despite the decline in profitability, analysts believe PTCL’s continued investment in digital infrastructure and enterprise connectivity will support long-term revenue growth. The company’s strong operating performance and double-digit revenue expansion indicate a healthy core business, though short-term challenges such as pension-related expenses and market headwinds continue to weigh on net earnings.
PTCL remains a key player in Pakistan’s telecommunications landscape, providing fixed-line, broadband, and enterprise services to millions of customers nationwide. The company is also driving digital transformation across sectors, leveraging its extensive fiber network and partnerships in ICT solutions.
As the telecommunications sector evolves amid increasing demand for data and connectivity, PTCL’s focus on operational efficiency, service diversification, and technology investment will be central to its recovery in the coming quarters.
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