The leadership in the enterprise foresee continued higher earnings as their optimism is based on host of opportunities unfolding before them. The recent changes in Telecom and IT sector dynamics across the country provide lucrative business options.
Such options include e-governance, which allows rural areas to be connected through Fibre Optic nodes, various security solutions, wireless connectivity and sub-letting of the existing Fibre Optic backbone for point-to-point connectivity to potential users such as GSM (cellular) and WLL operators. The directors announced that proposals and feasibility studies are on-going to seize these opportunities.
WorldCall Multimedia Limited (WML) was incorporated in Pakistan on June 9, 2000 as a public limited company and is listed on Lahore and Karachi Stock Exchange. Its registered office is situated at 103-C II Gulberg III, Lahore. WML is the subsidiary company of WorldCall Communications Ltd (WCL) which owns directly and indirectly 99.92% of its share capital.
Remaining shares are owned by general public. On December 20, 2005 the day's closing price of WML's share was quoted at Rs 35.25 per share which is more than three times of the par value. During the last one year the highest price of the share was quoted at Rs 41.85 per share.
It has been stated in the note annexed to the accounts under review of the company that its principal activity is to re-broadcast international/national satellite/terrestrial wireless and cable television and radio signals. It is also engaged in interactive communications as an internet service provider (ISP) and to establish, maintain and operate the licenced telecommunications system for providing basic telephony service in Lahore Telecom Region (LTR). Pakistan Telecommunications Authority (PTA) and Pakistan Electronic Media Regulatory Authority have licensed the company for these purposes.
The directors rejoiced while informing that the company has been awarded ISO 9001:2000 certification in November 2004. This makes WML the first cable operator in Pakistan to have achieved this status.
During the year 2004-05, the period under review, the company posted all time high/revenue at Rs 355.17 million (2003-04: Rs 264.33 million) registering 34.4% growth over the preceding year's.
The company invested Rs 126.84 million in fixed assets during the fiscal year for expanding and upgrading its network. During the year, Rs 174.9 million was generated from operations before working capital adjustments as compared to Rs 95.5 million last year indicating that the company can comfortably meet its direct and operating costs from its revenues.
The directors have also documented in the their report that there are no outstanding statutory payments due on account of taxes, duties, levies and charges except of normal routine nature.
The company's gross profit shot up by 63.6% to Rs 244.22 million from previous year's Rs 149.26 million which is higher growth rate than revenue. It shows that not only quantum of its revenue improvement but also rate of margin also went up. This is ample evidence of the management's prudent business processing in the face of rising inflation.
The company posted pretax profit at Rs 83.12 million (2003-04: Rs 5.68 million) which is impressive performance as the figure is nearly 15 times of the preceding year's amount.
The directors foresee even better performance in the future. The optimism is based on a number of opportunities opening up. One has to see the directors report and chairman review to share their vision.
One of these opportunities is the steady increase in the customer base of Cable TV & Internet over cable services.
The recent changes in telecom and IT sector dynamics across the country have opened a host of opportunities for effective utilisation of the company HFC (Hybrid Fibre Coaxial) network.
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Performance Statistics (Million Rupees)
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30th June 2005 2004
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Share Capital-paid-up: 530.00 530.00
Accumulated (Loss): (3.68) (71.52)
Shareholders Equity: 526.32 458.48
L.T. Debts: 64.67 83.02
Deferred Liability-Gratuity: 9.21 6.30
L.T. Deposits: 2.63 2.70
Current Liabilities: 175.62 169.31
Fixed Assets: 545.44 517.85
Intangible Assets: 5.33 6.13
Deferred Cost: 5.26 11.27
L.T. Deposits: 5.94 3.85
Deferred Assets: 10.39 25.67
Current Assets: 206.09 155.04
Total Assets: 778.45 719.81
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Revenue, Profit & Pay Out
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Revenue: 355.17 264.33
Gross Profit: 244.22 149.76
Operating Profit: 107.39 30.54
Other Operating Income: 2.07 1.50
Finance (Cost): (26.07) (26.36)
(Depreciation): (49.38) (49.28)
Profit Before Taxation: 83.12 5.68
Profit/(Loss) After Taxation: 67.85 (3.82)
Earning Per Share (Rs): 1.28 (0.07)
Dividend Cash (%): 10.00 -
Share Price (Rs) on 20/12/05: 35.25 -
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Financial Ratios:
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Price/Earning Ratio: 27.53 -
Book Value Per Share: 9.93 8.65
Price/Book Value Ratio: 3.54 -
Debt/Equity Ratio: 11:89 15:85
Current Ratio: 1.17 0.91
Asset Turnover Ratio: 0.46 0.37
Days Receivables: 114 62
Gross Profit Margin (%): 68.76 56.66
Net Profit Margin (%): 19.10 (1.45)
R.O.A (%): 8.72 (0.53)
R.O.C.E (%): 11.25 (0.69)
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COMPANY INFORMATION: Chairman: Salman Taseer; Chief Executive Officer: Shaan Taseer; Director: Sulieman Ahmed Said Al-Haq; Chief Financial Officer: Suhail Ahmed; Company Secretary: Muhammad Irfan Khawaja; Registered/Head Office: 103-C/II, Gulberg III Lahore; Web Address: Not Mentioned; Project Office: 16-S, Gulberg III Lahore.