Technology & Communication: TELECARD LIMITED - Nine Months Ended March 31 2005
TeleCard Limited was incorporated in Pakistan on October 29, 1992 as a public limited company. The shares of the company are listed on the Karachi and Islamabad Stock Exchanges. The company has obtained a license from the Government of Pakistan to install, own and operate a network of card operated wireline payphones throughout the country and as a result thereof embark on building a nationwide pay phones network.
With the deregulation of the telecommunication sector, private sector has been allowed to provide competing services until now to state owned PTCL (on Monday 20th June 2005 the Cabinet Committee on Privatisation has approved the sale of PTCL to Etisalat).
TeleCard has obtained licenses for Long Distance and International Services (LDI) and for Local Loop Services, as well frequency spectrum in all 14 telecoms regions of the country enabling it to provide Wireless Local Loop (WLL) services all across the country.
In September 2004, the company had announced Rs 2 billion rights. Issue which enabled the company to increase the paidup capital to Rs 3 billion. In September 2004, the Board of Directors also approved Rs 2 billion publicly listed TFC issue with a green shoe option of Rs 400 million. The company announced TFC issue of Rs 2.4 billion on May 26-27, 2005 which comprised private placement of Rs 1.9 billion and initial public offering of Rs 500 million.
TeleCard Limited, the first operator in the private sector to offer an integrated telecommunications solution, launched in January 2005 WLL services under the brand name of GO CDMA.
While launching the product the company emphasised that the GO CDMA WLL service would revolutionise the way people communicate as the quality of connectivity is better than landline, and the cost is the same to suit every pocket. Features, like high speed internet, SMS, voice mail, caller ID are part of the service offering.
The WLL facility would connect the subscribers to the world in a seamless way. Subsequent to the Quarterly Report under review, this GO CDMA was launched countrywide and the directors rejoiced that the service has been a big success.
During the nine months under review TeleCard Limited posted net sales of Rs 1.658 billion (9M 2003-04: Rs 1.141 billion) showing an increase of 45%. Gross profit registered impressive growth of 75%.
The bottom line thinned because of a number of factors viz. Increase in SG&A expenses, expenses incurred for raising funds for payment of frequency spectrum, depreciation charge, tax and financial charges. The future outlook remains optimistic as it has clear edge over new entrants in terms of full range of services, existing WLL Services etc.
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Performance Statistics (Million Rupees)
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Balance sheet -As At-
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March 31 June 30
2005 2004
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Share Capital-Paid-up: 3,000.00 1,000.00
Revenue Reserve: 472.53 444.84
Shareholders Equity: 3,472.53 1,444.84
L.T. Debts: 1,660.39 460.14
Deferred Liabilities: 224.65 123.96
L.T. Deposits: 61.89 64.96
Current Liabilities: 3,892.02 1,164.39
Tangible Fixed Assets: 3,158.02 1,875.84
Intangible Assets: 3,322.14 -
L.T. Investment in Subsidiary: 340.54 340.54
L.T. Loans, Deposits & Prepayments: 70.54 32.85
Deferred Costs: 30.02 42.59
Current Assets: 2,390.22 966.47
Total Assets: 9,311.48 3,258.29
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Profit & Loss A/c for Nine Months Ended
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March 31 2005 2004
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Net Sales & Services: 1,657.85 1,140.53
Gross Profit: 441.50 252.00
Operating Profit: 184.41 131.36
Other Income: 8.54 3.07
Financial (Charges): (57.30) (26.32)
Profit Before Taxation: 135.65 108.11
Profit After Taxation: 27.68 69.29
Earnings Per Share (Rs): 0.22 0.69
Share Price (Rs) on 20/06/05: 13.75 -
Price/Earnings Ratio: 62.50 -
Book Value of Share (Rs): 11.58 14.48
Debt/Equity Ratio: 32:68 24:76
Current Ratio: 0.61 0.83
Gross Profit Margin (%): 26.63 22.09
Net Profit Margin (%): 1.67 6.08
R.O.A. (%): 0.30 2.13
R.O.E. (%): 0.80 4.80
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COMPANY INFORMATION: Chairman: Sultan-ul-Arfeen; Chief Executive Officer: Fazal Hussain; Director: Bo Ericsson; Chief Financial Officer: Haroon Iqbal; Company Secretary: Habib A. Farooqi; Registered Office: 3rd Floor, World Trade Centre 75, East Blue Area, Fazal-ul-Haque Road Islamabad; Web Address: www.telecard.com.pk Corporate Office: 7th Floor, World Trade Centre 10, Khayaban-e-Roomi, Clifton, Karachi.
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