KARACHI, Sept 30: Pakistan Telecommunication Company Limited (PTCL) announced cash dividend at 27.5 per cent (Rs2.75 per share); the board proposing to distribute Rs14 billion of the after tax profit of Rs19.8 billion earned for the year ended June 30, 2002.

A press release issued by PTCL boasted the highest ever revenue of Rs66 billion made by the company for the year ended June 30, 2002 and an earnings growth of 9 per cent over the earlier year. But the total revenue and earning numbers were already in the public knowledge, since these were disclosed by chairman Akhtar Ahmad Bajwa some time ago — analysts crediting the management for its open policy. It was therefore the expected dividend that was a subject of speculation at the stock market for the past several weeks. The 27.5 per cent cash announced by the Board on Monday, fell within the analysts markings as most of the market was throwing around dividend numbers ranging between Rs2.40 to Rs3.00. Annual general meeting (AGM) to approve accounts and dividend would be held on December 28.

The PTCL press release noted that the total revenue for the year ended June 30, 2002 had increased by Rs4.4 billion (7 per cent) to Rs66.4 billion, from last year’s Rs62.0 billion. Out of the total revenue, domestic revenue amounted to Rs47.3 billion and the international revenue contributed Rs19.1 billion. “PTCL’s dependence upon international revenue decreased from last year’s 31 per cent to 29 per cent in the current year while the domestic revenue showed an appreciable growth of 10 per cent over the last year’s figure of Rs43.1 billion”, the company stated.

It said that the international revenue for the year showed 1 per cent decline over the earlier year’s figure of Rs18.9 billion. The turnover from international operations was sustained through higher traffic volumes by better management of international circuits and routing despite declining trend of settlement rates and currency conversion.

The company observed that the increase in domestic revenues by Rs4.3 billion over the previous year was “commendable achievement despite delayed implementation of tariff rationalization measures and low level of business activities in the country”, PTCL said and added that the increase was mainly attributable to expansion/digitalization of PTCL network and the improvements in the operation support systems, value added services, increase in traffic due to improved marketing efforts, price reductions and overall growth of internet and cellular businesses.

The company stated that during the year the number of working connections increased to 3.65 million, from 3.34 million, an increase of 9.4 per cent, whereas total capacity rose 6 per cent to 4.33 million, from 4.08 million.

PTCL also expanded the outside plant (OSP) network for better utilization of spare switching capacity. Direct dialling NWD facilities were extended to 98 new stations, expanding NWD facilities to 1,741 stations, covering almost all of the country whereas Internet Dialup connectivity was extended to 407 new stations as total number of cities/towns having Internet Dialup facility reached up to 807 stations.

On the international telecommunications side, the company opened 2,786 new circuits and activated 156 Mb of IP bandwidth during the year, taking total IP bandwidth utilization to 232 Mbps from 76 Mbps.