WorlCall Telecommunication Limited


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Review of Worldcall Telecommunication Limited (WTL) , its products and services and its operational and financial performance during the period under review 2005-2008.

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WorlCall Telecommunication Limited

  1. 1. Financial Reporting Presentation WORLDCALL
  2. 2. Worldcall TeleCommunication (WTL) <ul><li>(WTL), an Oman Telecommunications Company (Omantel) launched its business in June 1996 </li></ul><ul><li>Initially the business was started with payphone operations </li></ul><ul><li>Then with shifts in technology, innovation and dedication led us to growth in diversified businesses with a range of services designed to serve the needs of the local market </li></ul><ul><li>In 2008 Worlcall became an associate company of Omantel after acquisition of major shares. </li></ul>Brief Introduction: History
  3. 3. Worldcall Tele Communication (WTL) <ul><ul><li>Mission Statement </li></ul></ul><ul><li>Worldcall Telecom Limited will demonstrate quality in all aspects of its business in a manner to be seen in as a way of Life.“They are committed to always remain ahead in delivering quality products and services conforming to the requirements of their entire internal and external customer.” </li></ul><ul><li>Vision </li></ul><ul><li>To become the number one national alternative telecoms provider and a leading multi-services operator with regional and international footprint </li></ul>Business Purpose of the Company
  4. 4. Worldcall Tele Communication (WTL) <ul><ul><li>Focusing on its aim to become the number one national telecoms provider and a leading multi service operator in the region, the company’s performance is as follows; </li></ul></ul>Performance
  5. 5. Worldcall Tele Communication (WTL) Product Line
  6. 6. Worldcall Tele Communication (WTL) Structure Analysis
  8. 8. WorldCall Contribution to National Exchequer <ul><ul><li>Attracting foreign investors </li></ul></ul><ul><ul><ul><li>Omantel acquired 488.8 million shares in WorldCall </li></ul></ul></ul><ul><ul><ul><li>The foreign investment being attracted by the world call and during 2006-07 US$ 0.8 billion FDI came into the World call which was 15.6 percent of the total FDI . </li></ul></ul></ul><ul><ul><li>Investing in foreign markets </li></ul></ul><ul><ul><ul><li>Worldcall has 70.65% shareholding in Worldcall Telecommunications Lanka (Private) Limited which operates payphone operations in Sri Lanka </li></ul></ul></ul><ul><li>Reducing unemployment </li></ul><ul><ul><ul><li>Currently only worldcall telecom sector employed 5000 workers and the amount of worker employed every day is increasing </li></ul></ul></ul>
  9. 9. WorldCall Contribution to National Exchequer Subtitle Placeholder <ul><ul><li>GDP Contribution </li></ul></ul>
  10. 10. Development of Human Resources <ul><ul><li>Customer Relations </li></ul></ul><ul><ul><ul><li>Removing distance between customers by increasing number of franchises for better sale and after sale services </li></ul></ul></ul><ul><ul><ul><li>Things observed at 67-C III, Gulberg III, Lahore, Pakistan </li></ul></ul></ul><ul><ul><li>HR and Technology </li></ul></ul><ul><ul><ul><li>Installation of EDI technology: Records updated even after a single connection sale to help management decisions efficient </li></ul></ul></ul><ul><ul><li>Loans and Advances to the employees </li></ul></ul><ul><ul><ul><li>Helping employees in need Rs. 2.46 million (2006 : Rs. 0.365 million) in 2008 Rs. 5.20 million (2007 : Rs. 2.46 million </li></ul></ul></ul>
  11. 11. Development of Human Resources <ul><ul><li>Living Standard Scale (2008) </li></ul></ul><ul><ul><ul><li>Salaries, wages, benefits expense / number of employees=living standard </li></ul></ul></ul><ul><li>=(19363000 +492551000+31300)/5000 </li></ul><ul><li>=512227000/5000 </li></ul><ul><li>Earning per year =102445.4 </li></ul><ul><li>Earning per month =102445.4/ 12 </li></ul><ul><li>=8537 RS </li></ul><ul><li>Every laborer will get 8537 Rs a month which is not bad </li></ul><ul><ul><li>Push and Pull Strategy </li></ul></ul><ul><ul><ul><li>Worldcall Multimedia is working both on push and pull strategies, In push Strategy they use the sales force and trade promotion to push the production through channels. </li></ul></ul></ul><ul><ul><ul><li>In Pull Strategy they use a promotion strategy that calls for spending a lot on advertisement and consumer promotion to build up consumer demand </li></ul></ul></ul>
  12. 12. Competitor Information Based on Technology, Broadband services and Marketing Strategies <ul><ul><li>PTCL </li></ul></ul><ul><ul><ul><li>the largest telecommunication company in Pakistan. </li></ul></ul></ul><ul><ul><ul><li>The company consists of around 2000 telephone exchanges across country providing largest fixed line network. GSM, CDMA and Internet are other resources of PTCL, making it a gigantic organization. The Government of Pakistan sold 26% shares and control of the company to Etisalat in 2006. The Government of Pakistan retained 62% of the shares while the remaining 12% are held by the general public. </li></ul></ul></ul><ul><ul><li>Wi-Tribe </li></ul></ul><ul><ul><ul><li>Worldcall Multimedia is working both on push and pull strategies, In push Strategy they use the sales force and trade promotion to push the production through channels. </li></ul></ul></ul><ul><ul><li>Wateen </li></ul></ul><ul><ul><ul><li>Wateen Telecom is the Abu Dhabi Group’s latest communication investment in Pakistan.Sister company of Warid Telecom </li></ul></ul></ul><ul><ul><ul><li>Warid Telecom which provides mobile GSM services to over 10 million customers in 145 cities across Pakistan. </li></ul></ul></ul><ul><ul><ul><li>Our network puts Wateen at the global forefront of the WiMAX telecoms industry. </li></ul></ul></ul>
  13. 13. Market Share WLL Subscribers
  14. 14. Market Share Fixed Line Subscribers
  15. 15. Corporate Social Responsibilities WorldCall Making World a Better Place to Live <ul><ul><li>Many of the issues that are being grouped under the heading of CSR are already part of the daily work of construction professionals, They include </li></ul></ul><ul><ul><li>Ethics </li></ul></ul><ul><ul><ul><li>Integrity </li></ul></ul></ul><ul><ul><ul><ul><li>Commitment </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Truth </li></ul></ul></ul></ul></ul><ul><ul><li>Human Rights </li></ul></ul><ul><ul><ul><li>Disability Discrimination </li></ul></ul></ul><ul><ul><li>Employee Welfare </li></ul></ul><ul><ul><li>Environment </li></ul></ul><ul><ul><ul><li>Workplace Environment </li></ul></ul></ul><ul><ul><ul><ul><li>Company’s Impact on Environment </li></ul></ul></ul></ul>
  16. 16. Corporate Social Responsibilities Application of CSR in WorldCall <ul><ul><li>Environment </li></ul></ul><ul><ul><ul><li>Service without a wire (reducing visible cabling network) New cellity worldcall </li></ul></ul></ul><ul><ul><ul><li>100% buried fiber and exclusive owned Right of Ways for Fiber Ducts </li></ul></ul></ul><ul><ul><ul><li>Worldcall environmental issues forum hosted by worldcall internet solutions (information regarding different issues) http://www.worldcall.net.pk/advertisement_websites.php </li></ul></ul></ul><ul><ul><li>Employee </li></ul></ul><ul><ul><ul><li>Loans and Benefits </li></ul></ul></ul><ul><ul><ul><ul><li>Employee Compensation </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Different ways of Punishment </li></ul></ul></ul></ul></ul><ul><ul><li>Ethics </li></ul></ul><ul><ul><ul><li>Not displaying the true picture, charging more from the customer and providing lower quality at some occasions </li></ul></ul></ul><ul><ul><li>Human Rights </li></ul></ul><ul><ul><ul><li>Disability Discrimination </li></ul></ul></ul>
  17. 17. Profit and Loss Analysis Overall Analysis of Expenses, Taxation, Profit etc.
  18. 18. Profit and Loss Analysis Turnover Comparison <ul><ul><li>Market skimming strategy was used by Worldcall to attract more customer </li></ul></ul><ul><ul><li>The broad band service is relatively new in the market </li></ul></ul><ul><ul><li>The decrease in sales of telephone wireless services are numerous external factors influencing demand, such as competition, population taste etc. </li></ul></ul>Why sales increase/Decrease 2008 values in percentages 2007 values in percentages 2006 values in percentages Telecom services (6) (18) 84 Broad band 21 29 New product launch Less Sales tax (28) (18) ---- Discount & commission 1.3 (65) ---- Net sales 4.5 (1.0) 84.4 %
  19. 19. Gross Profit Analysis Comparing Major Expenses <ul><ul><li>The company purchased and installed much equipment in prior years so the expenses incurred installing the equipment is higher as compare to the years coming after that </li></ul></ul><ul><ul><li>PTA’s recent reduction in cost of Domestic Private Leased circuit by 35% International Leased circuit by 39% and international bandwidth cost by 40% </li></ul></ul>Why expenses increase/Decrease
  20. 20. Operating Cost Analysis Comparing Major Expenses Why Expenses Increase/Decrease <ul><ul><li>Depreciation increasing rapidly because the company is investing more in fixed asset </li></ul></ul><ul><ul><li>Marketing expenses are increasing because of new product promotion and competition </li></ul></ul><ul><ul><li>The company bought oracle 9i server for better internal and external communication. </li></ul></ul>
  21. 21. Profit Before and After Tax Comparison
  22. 22. Profit Before and After Tax Financial Costs Eating up Profit <ul><ul><li>Financial Costs increasing rapidly as you can see in the table </li></ul></ul><ul><ul><li>Long term loans increasing with time </li></ul></ul><ul><ul><li>STEPS TAKEN TO CONTROL THE EXPENSES </li></ul></ul><ul><ul><li>Expensive Debt Retirement </li></ul></ul><ul><ul><li>Advances and loans to suppliers associated company </li></ul></ul>2005 2006 2007 2008 Finance cost (3.65) (4.11) (7.26) (10.23) Major Lenders Habib Bank Limited 750,000,000 254,142,000 National Bank of Pakistan 750,000,000 254,142,000 Muslim Commercial Bank Limited 150,000,000 50,802,000 Askari Commercial Bank Limited 150,000,000 50,802,000
  23. 23. Profit Before and After Tax True Picture of Earnings 2005 2006 2007 2008 Net income (19,217,652) 947,610 623,536 76,218 ADD interest 24,743,728 312,939 179,092 460,569 Add Taxes 234,610 (82,905) Add depreciation & amortization 25,261,309 3,953,280 5,124,979 454,401 42,943 3570 46,741 662,837 58,273 63,503 2500 802,272 86,535 89,497 2932 Total EBITDA 39865644 2042814 1372646 1518023
  24. 24. Conclusion Some solutions to the problems <ul><ul><li>WorldCall website </li></ul></ul><ul><li>Although the Worldcall has a website but it needs a lot of modifications. Firstly all the services of Worldcall should be merged on one site. Secondly online payment option. Thirdly FAQ should be there on the site. Fourth the website should be updated on regular intervals. It should be more detailed having information about all the packages, future plans and details about the franchises and telephone numbers of CRM and other customer related departments. </li></ul><ul><li>Use of ERP </li></ul><ul><li>The ERP will help them to combine their entire sectors and further more all the departments will be connected with each other. </li></ul><ul><li>Sustainable growth </li></ul><ul><li>They are lending a lot of money from outside, if the growth is sustainable they can expand with the help of their own resources. </li></ul>
  25. 25. What Questions do you have ??