Pakistan Telecommunication Company Ltd (PSX: PTC) has reported a net loss of Rs1.22 billion for the nine months ended September 30, 2025, marking a reversal from a profit of Rs999.98 million during the same period last year. According to the company’s financial disclosure to the Pakistan Stock Exchange, the decline in profitability occurred despite notable revenue growth driven by stronger performance in core telecommunications services. Earnings per share fell to a loss of Rs0.24, compared to earnings of Rs0.20 per share during the corresponding period of 2024.
PTCL’s revenue for the nine-month period rose 12.65 percent to Rs89.60 billion, up from Rs79.54 billion in the previous year, reflecting sustained growth across its broadband, enterprise, and wholesale business segments. The company’s gross profit increased by 30.33 percent to Rs26.21 billion from Rs20.11 billion, supported by improved cost efficiencies. The cost of services rose at a slower pace of 6.67 percent, reaching Rs63.39 billion, allowing PTCL to enhance its gross margin despite operational challenges. However, administrative and general expenses increased by 14.81 percent to Rs7.61 billion, while selling and marketing expenses climbed by 12.65 percent to Rs4.05 billion, driven by higher promotional and operating costs across business units.
The telecom operator’s operating profit stood at Rs12.91 billion, representing a 56.70 percent increase compared to Rs8.24 billion in the same period last year. The improvement in operational performance, however, was overshadowed by a one-time past service cost for pension obligations amounting to Rs5.89 billion, which had a significant adverse impact on the company’s bottom line. Other income declined by 26.33 percent to Rs7.72 billion from Rs10.48 billion, mainly due to lower returns on investments and reduced non-operating gains. Finance and other costs fell by 13.39 percent to Rs14.94 billion from Rs17.25 billion, partially offsetting some of the pressure on profitability.
As a result of these factors, PTCL reported a pre-tax loss of Rs197.64 million, compared to a profit of Rs1.47 billion in the same period of the previous year. After accounting for taxation of Rs1.02 billion, which increased sharply from Rs468.82 million last year, the company recorded a net loss of Rs1.22 billion for the nine-month period. The decline in profitability highlights the combined effect of higher operating expenses, pension-related adjustments, and reduced non-operating income despite sustained top-line growth.
The financial performance underscores the broader cost challenges faced by telecom operators in Pakistan, particularly amid rising inflationary pressures and operational costs associated with network expansion and modernization. PTCL’s continued investment in its infrastructure and service improvements has supported revenue growth, but the financial results reflect the balancing act between maintaining competitiveness and managing rising expenditures. The company remains a key player in Pakistan’s telecommunications landscape, with its ongoing efforts aimed at sustaining revenue momentum while optimizing operational efficiency in a dynamic market environment.
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