KARACHI- A recently filed petition in the Sindh High Court against the privatisation of PTCL could not have any adverse impact on the companys revenue and profitability as its sources of earning are expected to remain intact in the days to come, analyst told The Nation on Thursday. Mustufa Bilwani, an analyst at JS Global Research, said that this development would not be a serious concern for the PTCL management as it could not sell the property unless the remaining titles are transferred on the companys name. He further said in accordance with the Share Purchase Agreement signed between the Government of Pakistan and Etisalat, these properties could be used for redevelopment which would boost non-operating cash flows. About PTCL financial results he said though the company witnessed decline in its reported earnings of the entire fiscal year, 2008-09 as compared to FY08 amid slump in fixed line revenues, but its other segments such as, wireless local loop, broad band and services portfolio facilitated to temper the impact of the fixed line weakness. It must be recalled that Sindh High Court (SHC) on Wednesday issued a stay order against the privatisation of the company on a constitutional petition filed by the labour union of the company. The plaintiff has also accused the management of trying to sell assets to pay outstanding dues. According to some reports, a final decision on the matter will be taken by the court on October 27th. Earlier, PTCL announced its full year FY09 results recently, reporting earnings of Rs9.15bn (EPS Rs1.79). In the corresponding period last year the company reported a loss of Rs2.8bn (loss per share of Rs0.55) on account of a one off voluntary separation charge of Rs23.9b. Thus, on a recurring basis the companys full year earning declined by 28 per cent. In fourth quarter alone the company reported earnings of Rs1.93b (EPS Rs0.38) as against a profit of Rs3.8b (EPS of Rs0.73) in 4Q08, a sharp fall of 49 per cent YoY. Depleting fixed line revenues was the main reason for the earnings decline. As expected, the company did not declare any payouts with the results. PTCL reported revenues of Rs59.2b, down 11 per cent YoY. Lower fixed lines subscribers in the outgoing year were the key reason behind the fall in revenues. Fixed local loop subscribers which stood at 4.3m in Jun 08, declined to 3.4m by March 09. All is not gloom though, as handsome growth in the Wireless Local Loop, broadband and services. Interestingly, the company has made a change in the presentation of its revenue, with a retrospective adjustment reflected in its prior year figures. This mainly relates to reporting of interconnect charges on a gross basis (previously PTCL reported net interconnect charges). There is however no impact on the overall profitability for prior year. Amid pressure from depleting revenues, PTCLs gross profit fell 26 per cent to Rs21.5b; while operating profits came in at Rs10.7b, down 34 per cent YoY. The management has been aggressively trying to tackle the problems faced on the fixed line front as reflected by the recent launch of the 'Double up bundle package. It is believed that bundling fixed line with the booming broadband segment to prove attractive with the customers.