Its span of geographical outreach and uses of complex technology is no doubt highly impressive. During the year under review the company posted revenues in the sum of Rs 2.301 billion which was less than last year's figure of Rs 2.537 billion mainly because of increasing competition and falling tariffs in the deregulated market scenario.
Income from other sources also helped the company to increase profits to Rs 438.80 million from Rs 242.45 million in the previous year. The company announced bonus stock dividend at 15%. At present the WCL share is trading at Rs 11.35 per share carrying premiums at 13.5%.
WorldCall Communications Ltd (WCL) was incorporated in Pakistan on December 14, 1995 as a public limited company. WCL made a public offering during 2000 and is currently listed on Karachi and Lahore Stock Exchanges. Its principal activity is the operation and maintenance of a public payphones network.
Payphones are installed at various shops/commercial outlets. The company also provides calling card services. The registered office of the company is situated at 103-C/II Gulberg-III Lahore.
According to the pattern of shareholding dated June 30, 2005, one of the shareholders who is also Director of the company Suleiman Ahmed Said Al-Hoqani held 56.489 million shares out of total 159.278 million shares of the company which works out to 35.5% of the company's stock.
The other shareholder is the associated company First Capital Securities Corporation Ltd who held 30.328 million shares which accounts for the 19% of the company's stock. Two more associated companies also own company's stock and these are First Capital Mutual Fund Limited and Shaheen Insurance Company Ltd but they own very small lot of company's shares.
One of its subsidiary is WorldCall Multimedia Limited (WML). WML was awarded the local loop license by PTA for providing telephony services in the Lahore Telecom region. Last month in October testing was underway and services were about to be launched soon in the city.
WML posted revenues of Rs 355.2 million and profit after taxation of Rs 67.9 million (Last year: Rs 3.8 million). It may be pointed out that the net cash inflows from operators amounted to Rs 109 million.
WCL's other subsidiary is located in Sri Lanka namely WorldCall Telecommunications Lanka (Pvt) Limited (WTL). It is visualised that WorldCall will be focusing on CDMA technology based payphones for speedy connectivity that will help improve the company's profitability.
During the year its net loss drastically reduced to SLR 1.8 million from last year's figure of SLR 12.6 million. Hence the WTL's performance seems to have been improved substantially.
Its associated company WorldCall Broadband Limited (WBL) was awarded the local loop license for Karachi Telecom region and started telephony services in the city since March 2005, becoming the only state-of-the-art HFC network offering, triple play to its users ie cable tv, Broadband Internet and Telephony services.
WBL has shown healthy performances by posting revenues at Rs 285 million and after tax profit of Rs 117 million, which is more than three times of the last year's profit.
Another associated company, WorldCall Telecom Limited (WTL) became the first private sector telecom operator to start Long Distance and International (LDI) services in Pakistan after deploying a state-of-the-art Next Generation Network (NGN) from top of the line global vendors including Siemens Cisco and Nuera. Under the LDI License, the company offers nation-wide and international calling facilities to consumers on competitive rates.
The other associated company is Total Media Ltd (TML) involved in the production and broadcast of television programmes through satellite. At first it was uplinked from Dubai Media City. But now TML is uplinked from Pakistan.
======================================================
Performance Statistics (Million Rupees)
======================================================
Balance sheet -As At-
======================================================
30th June 2005 2004
======================================================
Share Capital-Paid-up: 1,592.78 1,592.78
Reserves & Surplus: 1,082.33 643.53
Shareholders Equity: 2,675.11 2,236.31
L.T. Debts: 238.99 330.36
L.T. Deposits: 125.85 163.09
Retirement Benefits: 26.70 23.12
Deferred Taxation: 245.74 227.00
Current Liabilities: 569.14 582.40
Fixed Assets: 1,184.27 1,238.07
Payphones & Ancillary Equipment: 0.56 11.05
Intangible Assets: 31.86 35.84
L.T. Deposits: 30.49 31.96
L.T. Investments-at Cost: 1,302.38 1,231.66
Investment Property: - 13.50
Deferred Costs: 5.34 11.68
Current Assets: 1,326.63 988.52
Total Assets: 3,881.53 3,562.28
------------------------------------------------------
Revenue, Profit & Pay Out
------------------------------------------------------
Revenue-less Discounts and
Return Plus Franchise Receipts: 2,301.40 2,536.98
Gross Profit: 418.02 556.13
Operating Profit: 175.81 312.30
------------------------------------------------------
Unrealized Gain on Re-measurement
------------------------------------------------------
of Securities to Fair Value: 283.91 38.46
Other Income: 100.91 78.05
Finance (Cost): (66.29) 64.59
(Depreciation): (126.34) 122.83
Profit Before Taxation: 484.03 339.86
Profit After Taxation: 438.80 242.45
Earnings Per Share (Rs): 2.75 1.52
Dividend Bonus Stock (%): 15.00 -
Share Price (Rs) on 17/11/05: 11.35 -
------------------------------------------------------
Financial Ratios
------------------------------------------------------
Price/Earning Ratio: 4.13 -
Book Value Per Share: 16.80 14.04
Price/Book Value Ratio: 0.68 -
Debt/Equity Ratio: 9:91 6:94
Current Ratio: 2.33 1.69
Assets Turnover Ratio: 0.59 0.71
Days Receivables: 11 12
Gross Profit Margin (%): 18.16 21.93
Net Profit Margin (%): 19.07 9.56
R.O.A (%): 11.30 6.80
R.O.C.E (%): 13.25 8.14
======================================================
COMPANY INFORMATION: Chairman & CEO: Salman Taseer; Director: Suleiman Ahmed Said Al-Hoqani; Chief Financial Officer: Muhammad Naveed Tareq; Company Secretary: Muhammad Noaman Adil; Registered/Head Office: 103-C/II, Gulberg-III Lahore, Pakistan: Web Address: Not Reported.