Pakistan Telecommunication Company Limited (PTCL), the leading telecom and ICT services provider in the country, has announced its financial results for the six months ended June 30, 2023. The announcement was made during the Board of Directors' meeting held in Islamabad on July 19, 2023.
Throughout the first half of 2023, PTCL Group has sustained its momentum, further solidifying its position as the leading integrated telecom service provider in Pakistan. Despite the prevailing challenging macroeconomic conditions, the Group has achieved a remarkable 26.8% revenue growth compared to the same period of last year. This substantial increase in revenue is primarily attributed to the exceptional performance across multiple segments, including fixed broadband, mobile data, business solutions and banking services.
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The business landscape in 2023 continues to be influenced by the adverse impact of macroeconomic challenges that arose in 2022. The escalating energy and fuel tariffs present ongoing obstacles for telecom operators, making it difficult to deliver high-quality services to consumers at affordable prices. Delays in LC opening have affected the operators' network expansion plans. Significant devaluation of the Pakistani Rupee in the first quarter, coupled with rising interest rates and additional super tax over and above regular corporate tax, has greatly impacted the profitability. To mitigate the effects of these challenging issues, policy intervention by the Government is required to provide much needed relief to the sector.
PTCL Group Highlights
• PTCL Group’s revenue of Rs 90.9 billion in 2023 is 26.8% higher as compared to the same period of last year.
• The Group’s profitability was, among other factors, particularly affected by significant Rupee devaluation in the first quarter as the Group has unhedged FOREX liabilities. The Group has posted a net loss of Rs 8.5 billion.
• PTCL continued its growth by posting 17.3% YoY revenue growth.
• PTML’s (Ufone) revenue grew by 22.4% YoY as compared to the same period of last year.
• U Bank has achieved a 96.5% growth in its revenue over the same period of last year.
PTCL Highlights
• PTCL’s revenue of Rs 46.9 billion for the period is 17.3% higher than 2022, mainly driven by growth in Carrier & Wholesale and Broadband segments.
• The company has posted an operating profit of Rs 2.9 billion with an impressive 57% growth over last year and a net profit of Rs 6.9 billion. Increase in non-operating income due to translation gain on the Company’s forex denominated receivables and gain on disposal of obsolete assets due to upgrade and fiberization of the network, played a significant role in achieving 34.5% increase in the net profit as compared to same period of last year.
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PTCL Consumer Business: Steady Performance
PTCL achieved 17.2% revenue growth over the same period last year in the fixed broadband business. The Company further strengthened its flag ship FTTH brand, ‘Flash Fiber’ by achieving significant net subscriber additions through exceptional customer experiences and aggressive expansion of fiber network across the country which played a vital role in achieving significant increase in FTTH revenue by 106.5%. IPTV segment also showed a 5.8% revenue growth YoY. Voice and wireless revenue streams continue the declining trajectory as they are impacted by OTT services and tough competition from cellular operators.
PTCL Business Services:
Business services segment continued its momentum sustaining market leadership in IP bandwidth, cloud, data center, and other ICT services segments. PTCL’s enterprise business grew by 21.1% as compared to last year, while carrier and wholesale business continued its growth momentum and achieved 34.9% overall revenue growth. International voice revenue has increased by 18.6% as compared to last year. Despite the current challenging economic environment, overall Business Solutions revenue has shown a remarkable 27.4% year-on-year growth.
As the national telecom carrier and connectivity backbone in Pakistan, PTCL Group is committed to deliver innovative solutions that drive the growth of a 'Digital Pakistan'. This is achieved through the establishment of robust telecommunication infrastructure and a wide range of services, all aimed at enhancing the customer experience and accelerating progress in the country. PTCL collaborated with Vodafone to bring industry leading IoT products, services and solutions to the Pakistani market. The partnership will allow to develop and deliver a full suite of end-to-end IoT services aimed towards accelerating enterprise digital enablement and improving adoption of connected services in the Pakistani society.
PTML – Ufone Highlights:
Continuing its growth trajectory, Ufone recorded an impressive 22.4% YoY increase in its revenue and has achieved 24.5 million subscribers base. Network modernization activities, carried out in the first six months of 2023, resulted in better customer experience for Ufone subscribers. Ufone introduced best value Data Roaming Offer for its prepaid customers, who embarked on the holy pilgrimage to Saudi Arabia. Ufone is upgrading its IR services by launching various LTE products with our roaming partners in all major destinations. The company also upgraded its digital wallet ‘UPaisa’ to provide a high-quality user journey by introducing a QR Code Scan feature on its digital app to bring unprecedented convenience to its users and simplify financial transactions.
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U Bank Highlights:
Despite an extremely tough macroeconomic environment, U Bank, the microfinance and branchless banking subsidiary of PTCL, continued its growth trajectory and has achieved a remarkable 96.5% growth in revenue and an impressive 27.9% growth in net profit over the corresponding period of last year, while maintaining a strong balance sheet position. The bank stands resolute in its commitment towards financial and social inclusion, utilizing its extensive outreach to provide exceptional services to a diverse clientele across the length and breadth of the country through its rural retail banking, corporate finance & investment banking, Islamic banking, urban retail banking, corporate banking, and digital banking canvases.
Corporate Social Responsibility:
During the first six months of 2023, PTCL Group undertook various CSR initiatives to strengthen its position as a national carrier. Amongst these initiatives, a massive blood donation campaign was held in Islamabad in connection with ‘World Blood Donor Day’. The initiative stems from PTCL Group’s continuous commitment to create shared value and giving back to society. In addition, Ufone embarked on a shared initiative with the Polio Eradication Initiative (PEI) in Pakistan to raise awareness amongst the citizens regarding the importance of polio eradication through vaccination. PTCL Group endeavors to be a shining example of unwavering determination and bring a positive change in the lives of the people of Pakistan.