AirLink Earnings Down 48% in 3QFY25
Staff Report:
Islamabad: Air Link Communication (AIRLINK) announced its 3QFY25 result on Tuesday, where the company recorded consolidated earnings of Rs535mn (EPS of Rs1.35), down 48% YoY and 64% QoQ. This takes 9MFY25 consolidated earnings to Rs2,854mn (EPS of Rs7.22), down 7% YoY.
On an unconsolidated basis, AIRLINK recorded earnings of Rs403mn (EPS of Rs1.02), up 9% YoY while down 70% QoQ. This takes 9MFY25 earnings to Rs2,077mn (EPS of Rs5.25), up 20% YoY.
The result came lower than industry expectations due to lower-than-expected sales, and higher finance cost.
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Net sales clocked in at Rs28bn, down 12% YoY and 20% QoQ, mainly due to a slowdown in mobile phone sales during 3QFY25.
Finance cost increased by 65% YoY and 38% QoQ to Rs1.4bn in 3QFY25, mainly due to a rise in short-term borrowings to meet working capital requirements.
As per our channel checks, amid a slowdown in mobile phone sales, the company has extended its credit period to 40 days from the earlier 15–20 days, while payments to its suppliers are made on time,” Topline said.
AIRLINK’s gross margins improved to 10.4% in 3QFY25 from 9.9% in 3QFY24 and 9.2% in 2QFY25.
Effective tax rate stood at 39% in 3QFY25, compared to 44% in 3QFY24 and 19% in 2QFY25. In 9MFY25, the effective tax rate stood at 27%, similar to the 27% recorded in 9MFY24.
