PTCL’s Budget Document Got Leaked, Projects 9 Bln Revenues Next Year

Aftab Maken of “The News” has been lucky in getting the scoops from someone at the top level management at PTCL. He has uncovered plenty of proceedings from Board of Directors’ meeting in the past and he has done it again today.
This time he has produced this budget report that has all the details of PTCL’s (will be) doings during 2010-2011, including the revenues, expenses, lay-off details, taxation and much more.
Aftab claims that PTCL has projected over Rs 9 billion profits for the next financial year without a single penny of investment for facilitating its over 4.5 million subscribers, citing the document that was made available to him.
Aftab notes that despite increase in its revenue, interestingly the company’s allocation for the provision of taxes will nearly remained unchanged at Rs 4.913 billion against last year’s payment of Rs 4.970 billion.
Revenues
Of the total net revenue of Rs. 60.39 billion for FY2010/11 against last year’s collection of Rs. 54.15 billion, the company will have billions of rupees under its services, including MM & BB, international business, wireless (WLL), Evo, carrier and wholesale and corporate services.
Revenues Break-up

• Rs 8.086 billion from MM & BB
• Rs 7.241 billion of international business
• Rs 2.284 from WLL
• Rs 1.230 billion from Evo
• Rs 11.412 billion of carrier and wholesale
• Rs 7.368 billion from corporate services.
• Rs 2.685 billion under the head of return on deposits and investments
• Rs 182 million of late payment
• Rs176 million under the head of miscellaneous.

Operating Expenses
The operating expenses of the PTCL also amounts to Rs 49.014 billion for FY2010/11 against last year’s expenses of Rs 44.382 billion, an increase of 10 per cent, while there is no mention of any investment for improving the quality of the service and introduction of new technologies.
Expense Break-up

• Rs 12.351 billion has been allocated for depreciation and amortization
• Rs 11.132 billion for employment costs
• Rs 5.799 billion for foreign operator’s cost
• Rs 2.429 billion for cable and satellite charges
• Rs 4.062 billion for fuel and power
• Rs 1.8 billion for doubtful debts
• Rs 2.705 billion for repairs and maintenance
• Rs 1.701 billion for subscriber’s acquisition cost
• Rs 3.014 billion for licenses and regulatory charges
• Rs 1.317 billion for marketing expenses
• Rs 469 million for rent, rates and taxes
• Rs 771 million for USF
• Rs1.464 billion under the head of other expenses.
• Rs 400 million under the head of medical expenses for 29,381 employees
• Rs 134 million as productivity incentive for the employees.

The PTCL also continues its downsizing policy of employees, including senior management to mid and junior managers and it will lay off another 83 employees during the financial year 2010/11.
Aftab claims that the total lay off employees include two posts of executive vice presidents, five posts of general managers, five posts of senior managers and mangers each, 17 posts of assistant mangers, management trainees and 49 posts of non-management trainees.