Financial ReportingPresentationWORLDCALL

Worldcall TeleCommunication (WTL)

•(WTL), an Oman Telecommunications Company (Omantel) launched its business in June 1996

•Initially the business was started with payphone operations

•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

•In 2008 Worlcall became an associate company of Omantel after acquisition of major shares.

Brief Introduction: History

Worldcall Tele Communication (WTL)

• Mission Statement

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.”

• Vision

To become the number one national alternative telecoms provider and a leading multi-services operator with regional and international footprint

Business Purpose of the Company

Worldcall Tele Communication (WTL)

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;

Performance

Worldcall Tele Communication (WTL)Product Line

Worldcall Tele Communication (WTL)Structure Analysis

SWOT ANALYSIS

WorldCall Contribution to National Exchequer

• Attracting foreign investorso Omantel acquired 488.8 million shares in WorldCall o 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.

• Investing in foreign marketso Worldcall has 70.65% shareholding in Worldcall

Telecommunications Lanka (Private) Limited which operates payphone operations in Sri Lanka

• Reducing unemploymento Currently only worldcall telecom sector employed 5000 workers

and the amount of worker employed every day is increasing

WorldCall Contribution to National Exchequer Subtitle Placeholder

• GDP Contribution

Development of Human Resources

• Customer Relationso Removing distance between customers by increasing

number of franchises for better sale and after sale services

o Things observed at 67-C III, Gulberg III, Lahore, Pakistan

• HR and Technologyo Installation of EDI technology: Records updated even

after a single connection sale to help management decisions efficient

• Loans and Advances to the employeeso Helping employees in need Rs. 2.46 million (2006 : Rs.

0.365 million) in 2008 Rs. 5.20 million (2007 : Rs. 2.46 million

Development of Human Resources

• Living Standard Scale (2008)Salaries, wages, benefits expense / number of

employees=living standard=(19363000 +492551000+31300)/5000=512227000/5000Earning per year =102445.4 Earning per month =102445.4/ 12 =8537 RSEvery laborer will get 8537 Rs a month which is not bad• Push and Pull Strategy

o 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.

o In Pull Strategy they use a promotion strategy that calls for spending a lot on advertisement and consumer promotion to build up consumer demand

Competitor InformationBased on Technology, Broadband services and Marketing Strategies• PTCLo the largest telecommunication company in Pakistan. o 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.

• Wi-Tribeo 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.

• Wateen Wateen Telecom is the Abu Dhabi Group’s latest communication

investment in Pakistan.Sister company of Warid Telecomo Warid Telecom which provides mobile GSM services to over 10

million customers in 145 cities across Pakistan.o Our network puts Wateen at the global forefront of the WiMAX

telecoms industry.

Market ShareWLL Subscribers

Market ShareFixed Line Subscribers

Corporate Social ResponsibilitiesWorldCall Making World a Better Place to Live

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

• EthicsoIntegrity

o Commitmento Truth

• Human RightsoDisability Discrimination

• Employee Welfare

• Environment oWorkplace Environment

oCompany’s Impact on Environment

Corporate Social ResponsibilitiesApplication of CSR in WorldCall•Environment

•Service without a wire (reducing visible cabling network) New cellity worldcall•100% buried fiber and exclusive owned Right of Ways for Fiber Ducts•Worldcall environmental issues forum hosted by worldcall internet solutions (information regarding different issues) http://www.worldcall.net.pk/advertisement_websites.php

•EmployeeoLoans and Benefits

oEmployee CompensationoDifferent ways of Punishment

•EthicsoNot displaying the true picture, charging more from the customer and providing lower quality at some occasions

•Human RightsoDisability Discrimination

Profit and Loss AnalysisOverall Analysis of Expenses, Taxation, Profit etc.

Profit and Loss AnalysisTurnover Comparison

2008 values in

percentages

2007 values in

percentages

2006 values in

percentagesTelecom 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 %

• Market skimming strategy was used by Worldcall to attract more customer

• The broad band service is relatively new in the market

• The decrease in sales of telephone wireless services are numerous external factors influencing demand, such as competition, population taste etc.

Why sales increase/Decrease

Gross Profit AnalysisComparing Major Expenses

• 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

• PTA’s recent reduction in cost of Domestic Private Leased circuit by 35% International Leased circuit by 39% and international bandwidth cost by 40%

Why expenses increase/Decrease

Operating Cost AnalysisComparing Major Expenses

Why Expenses Increase/Decrease

• Depreciation increasing rapidly because the company is investing more in fixed asset

• Marketing expenses are increasing because of new product promotion and competition

• The company bought

oracle 9i server for better internal and external communication.

Profit Before and After TaxComparison

Profit Before and After TaxFinancial Costs Eating up Profit

• Financial Costs increasing rapidly as you can see in the table

• Long term loans increasing with time

STEPS TAKEN TO

CONTROL THE EXPENSES

• Expensive Debt Retirement

• Advances and loans to suppliers associated company

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

Profit Before and After TaxTrue Picture of Earnings

2005 2006 2007 2008Net 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

25,261,3093,953,2805,124,979

454,40142,943357046,741

662,83758,27363,5032500

802,27286,53589,4972932

Total EBITDA 39865644 2042814 1372646 1518023

ConclusionSome solutions to the problems

• WorldCall website 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.

•Use of ERPThe ERP will help them to combine their entire sectors and further more all the departments will be connected with each other.

•Sustainable growthThey are lending a lot of money from outside, if the growth is sustainable they can expand with the help of their own resources.

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