BTCL expects higher profits
Mbongeni Mguni | Wednesday December 15, 2021 16:43
In a statement to investors this week, BTCL directors said the pretax profits due to be reported by December 31, would be higher than last year’s by as much as P24 million. No reason was given for the more optimistic outlook, however the Corporation has been riding the crest of a wave with investments in infrastructure boosting data revenues at a time when many customers are working remotely and digitally due to COVID-19. BTCL’s share price is down nearly 10 percent in the year to date, although at 74 thebe as at Wednesday, the counter is enjoying a recovery from a low of 68 thebe which occurred in early October.
Directors have previously said the share price turbulence, which has seen the Corporation trading below its P1.15 listing price since mid-2018, is the result of having high numbers of retail investors on the share registry and the fact that BTCL’s trading is restricted to citizens and citizen-owned companies.
Retail investors are associated with impulse trading decisions unlike institutional investors who tend to be more sophisticated and adopt more long-term investment horizons.