Due to reduced fixed line operations, the higher cost of service and marketing expenses, Pakistan Telecommunication Company (PTCL) is expected to experience a 26 percent drop in its profitability year on year in the ninth month of the Financial Year 2011. The Board of Directors of the company is scheduled to meet on April 27, 2011 to approve the financial results for 9MFY11 in which the company is expected to post an earnings of Rs 5.85 billion with EPS of Rs 1.15 in 9MFY11 as compared to Rs 7.86 billion with EPS of Rs 1.54 in the same period last year, exhibiting a decline of 26 percent in annual terms.
In 9MFY11, other incomes are expected to increase by 14 percent to Rs 4.5 billion since the same time last year on the back of higher interest earned on the loan to Pak Telecom Mobile Limited. Considering the payout trends of the company and the need for the government to gain access to funds, one cannot rule out the possibility of dividend payout by the company. It is expected that the company will pay a dividend of Rs 1.5 per share in 3QFY11, which will help the government in collecting Rs 4.76 billion.
