LAHORE: The Board of Directors of WorldCall Telecom Limited has released its financial results for the half year ending June 30, 2025, reporting a loss of Rs 490 million after tax. This financial disclosure comes as the telecom sector in Pakistan prepares for significant advancements, including the anticipated 5G spectrum auction. The company has also outlined various strategic initiatives and future prospects in its Directors' Review Report.
According to the report, Pakistan's economy showed signs of stabilization in the first half of the fiscal year 2025, with economic growth at approximately 1.5%. Inflation reduced significantly from a high of 28% to a range between 4% and 7%, briefly touching a low of 0.3% in April. The current account moved into a small surplus due to a 32% increase in remittances and improved export performance. However, imports remained higher than exports. The government managed to reduce the budget deficit and increase the primary surplus, aided by the central bank's decision to lower interest rates from over 20% to around 11%. Despite these positive developments, growth remains below the official target of 3.6%.
The telecom sector in Pakistan is poised for transformation, with the Pakistan Telecommunication Authority (PTA) preparing for the long-anticipated 5G spectrum auction. The commercial rollout of 5G is expected within the next year. PTA has partnered with OpenSignal to monitor 4G and 5G performance and is addressing security concerns by planning to deactivate SIMs registered against deceased individuals. The regulator's initiatives also include a collaboration with Meta to counter online extremism, as well as the provisional registration of Starlink, pending full regulatory compliance. These efforts are part of a broader strategy to modernize infrastructure and improve service standards.
Financially, WorldCall saw a positive movement in revenue, resulting in an improved EBITDA. A reduction in finance costs contributed to this outcome, attributed to an increase in the Karachi Interbank Offered Rate (KIBOR). However, the company faced a significant devaluation of the Pakistani Rupee, which negatively impacted its profitability.
According to information available from the Pakistan Stock Exchange (PSX), the company's earnings per share stood at Rs (0.10) on both a consolidated and standalone basis, with a diluted loss per share of Rs (0.06). The company's financial performance was also influenced by consistent depreciation and amortization expenses.
In terms of future outlook, WorldCall has initiated the Giggle Academy in collaboration with WMG, aiming to bridge the digital divide through digital empowerment. The project was inaugurated at Bright Star Academy in Lahore, providing underserved communities with access to modern learning tools and digital content. Additionally, the company has commenced the deployment of 200,000 low-cost broadband connections in underserved areas across 20 cities in Pakistan.
The company is also focusing on the launch of its CADNZ product, a customer relationship management solution aimed at the banking sector in the United States. With ongoing investments in software development, WorldCall expects to generate revenue from these technology assets.
WorldCall continues to engage clients with its technology solutions, particularly in the AI and Big Data domains. The company plans to advance its offerings over the next three quarters, with increased market engagement for sales.