OUR STAFF REPORTER LAHORE - Pakistan Telecom Company Limited (PTCL) announced its FY11 result, registering unconsolidated earnings of Rs7.43 billion (EPS Rs1.46) 20 percent lower from last year. In 4Q alone, the company registered a PAT of Rs2.46 billion (EPS Rs0.48), up 71 percent YoY. The result came in higher than consensus estimates on account of higher other operating income. However, as expected, no dividend was announced as the company had already paid Rs1.75 per share in 3QFY11. In FY11, revenues declined by 3 percent YoY to Rs55.25 billion, as declining fixed line subscription continued to restrict growth in topline. Operating costs on the other hand rose by 9 percent YoY to Rs41.8 billion on the back of rising salary costs which in turn resulted in a 858bps decline in gross margins. With the company pursuing an aggressive advertising campaign, selling and marketing expenses too rose by 6 percent YoY. In 4QFY11 alone, earnings increased by 71 percent YoY to Rs2.46 billion (EPS Rs0.48). The growth is on the back of a 201 percent YoY increase in other operating income which amounted to Rs3.65 billion. The decline in earning is primarily on account of shrinking gross margins which fell by 860bps to 24.3 percent as compared to 32.9 percent in the same period last year. This was seen primarily due to declining trend in companys fixed line operation. As a result net sales also fell by 3.5 percent to Rs55 billion compared to Rs57 billion in same period last year. Other income during FY11 increased by 53 percent to Rs7.8 billion as compared to Rs5.1 billion in FY10 primarily on account of higher returns from bank placements and better dividend from Ufone.