Pakistan Telecommunication Company Limited (PTCL) sustained massive losses to the tune of Rs3.4 billion during the three-month period that ended June 30, 2024.

As per the latest financial results made available to the Pakistan Stock Exchange (PSX) on Wednesday, the company registered a loss of Rs2.1 billion in the same period of the previous year.

The increase in losses comes despite higher revenue and gross profit during the period.

The listed company’s revenue surged by over 21% to Rs55.85 billion in 2QCY24, compared to Rs46.04 billion recorded in the prior year.

The company’s cost of revenue inched up over 11% to Rs40.4 billion in 2QCY24, compared to Rs36.3 billion in SPLY.

Consequently, the gross profit of PTCL increased by over 59% YoY to Rs15.5 billion in 2QCY24. This translates to a profit margin of 27.7% in 2QCY24, higher than 21.2% in SPLY

During the quarter, the company saw its operating expenses surge to Rs12.97 billion, up 32% compared to Rs9.8 billion in SPLY.

Meanwhile, the company’s other income declined, hitting Rs4.76 billion in 2QCY24, compared to Rs6.68 billion in the previous year.

On the other hand, PTCL saw its cost of finance jump to Rs12.7 billion in 2QCY24, an increase of over 29%. The increase comes as interest rates increased significantly during the year.

As a result, the company posted a loss before tax of Rs5.5 billion during the period, as compared to Rs3.3 billion in SPLY.

Incorporated in Pakistan on December 31, 1995, PTCL provides telecommunication services in Pakistan.

The company owns and operates telecommunication facilities and provides domestic and international telephone services and other communication facilities throughout Pakistan.

PTCL’s major assets include Ufone, a mobile operator in Pakistan with over 20 million customers. Etisalat, with a significant minority stake, runs it under an agreement with the government of Pakistan, which has the majority stake.

Last week, PTCL appointed Azfar Manzoor as the new chairman of the company.