CALLMATE TELIPS TELECOM LTD

MUHAMMAD AQEEL KHAN,
Research Associate

July 16 - 22, 2007

Callmate Telips Telecom Ltd. is one of the largest Telecommunication Companies and was also the first ever to be awarded for Long Distance and International License Company in Pakistan. The company was incorporated on November 21st 1991 as a public limited company. CT Telecom was the merger between CallTel (Private) Limited and Telefon International Project Services (Private) Limited (TELIPS) on 11th November 2003. Callmate Calling Card is the market leader among all private calling card operators. TELIPS is the pioneer of the card payphones sector in Pakistan, with an aim of providing Pre-Paid Calling Card Facilities.

PRODUCT LINE

For consumer facility, Callmate Telips Telecom Limited provides various telecommunication services in Pakistan.

* Callmate Calling Card
* Global Calling Card
* Payphones
* Regional Calling Cards
* Umrah Calling Cards

CALLMATE CALLING CARD

These cards are available throughout Pakistan, and can be utilized through any digital telephones or mobiles and provide users with the essential mobility they demand in a country with a low tele-density such as Pakistan. Callmate Calling Card is the market leader among all private calling card operators and maintains approximately 35-40% of a growing market share. CT Telecom currently has a rapidly increasing usage of approximately 25 million minutes (Nationwide & international) per month originating from its Calling Card operations.

GLOBAL CALLING CARD

Callmate Global will be available in different denominations ranging from Rs. 250, Rs. 500 and Rs. 1000. This product will allow customers across Pakistan to utilize new product 'Callmate Global Calling Card' whenever they travel abroad to major destinations around the globe. Through this the customers will be able to use this card from abroad to make calls to Pakistan with convenience 24 hours a day.

PAYPHONES

It provides easy access to general masses that cannot afford phone at home. The growth of this segment remained impressive over the years as use of these payphones was significant in the society while other telecom services were not affordable. Callmate Telips Telecom Ltd offers Rs. 100, Rs. 200 and Rs. 800 denomination of Standalone Payphones.

REGIONAL CALLING CARDS

Regional cards available are Afghan card, Far East card, Middle East card, India card and Bangladesh card. Callmate has recently added these five new products in its product line. Just to give the customers more calling time with very low price.

CALLING CARDS TALK TIME REGION WISE

FAR EAST

China, Hong Kong, Malaysia, Singapore and Thailand

71 mins

Afghanistan

10 mins.

MIDDLE EAST

Bahrain, Qatar, Saudi Arabia and Kuwait

10 mins

India

18 mins

Bangladesh

18 mins

UMRAH CALLING CARDS

Through this consumer has the exclusive advantage of making calls to Saudi Arabia from Pakistan at very economical rates. Umrah card is especially in great demand during Ramadan and Hajj season. Umrah Calling Cards offering 50 minutes talk time on Fixed Line and 30 minutes on mobile phone.

NEW PRODUCT - BUY ONLINE

Through Callmate Telips Telecom new online sales portal, all credit card holders throughout Pakistan will soon have 24-hour access to the products through this convenient and secure system.

FINANCIAL PERFORMANCE

Company continued to manage to achieve an enormous growth, and perform well over the year to increase its profitability. The company declared profit after tax during first nine months of 2006 Rs. 715,726,000 (EPS: Rs. 12.04) as compared to Rs. 216, 618,000 (EPS: Rs3.64) in 2005 reflect a remarkable improvement of 2.3 times as compared to last year. An increase in net sales by 67% as compared to nine month results of the same period last year. Gross profit also improved to 37% from 26% in same period last year. Brief comparison of the financial performance of the company for nine months and quarter ended March 31, 2006 and same for last corresponding nine months and quarter is as under:

 

NINE MONTHS ENDED MARCH 31

FOR THE QUARTER ENDED MARCH 31

 

2006

2005

2006

2005

 

RUPEES IN THOUSANDS

Sales and Services Net

3,357,030

2,008,867

942,970

1,013,032

Gross Profit

1,228,638

527,810

360,602

290,391

Profit Before Taxation

887,664

333,258

241,834

234,226

Profit After Taxation

715,726

216,618

223,475

152,910

EPS

12.04

3.64

3.76

2.57