Pakistan Telecommunication Company Limited (PTCL), a leading telecom and ICT services provider, has released its financial results for the six months ending on June 30, 2023. The announcement took place during the Board of Directors’ meeting held in Islamabad on Wednesday.
Operating Profit and Net Profit Surge
PTCL has achieved an operating profit of Rs. 2.9 billion, showing a remarkable 57 percent growth compared to the previous year. The net profit stands at Rs. 6.9 billion, with a notable 34.5 percent increase as compared to the same period last year. Non-operating income, driven by translation gains on forex-denominated receivables and the disposal of obsolete assets during network upgrades and fiberization, significantly contributed to the net profit growth.
Revenue Growth in Carrier & Wholesale and Broadband Segments
The company’s revenue for the period amounts to Rs. 46.9 billion, representing a substantial 17.3 percent increase over the previous year. This growth is mainly attributed to the Carrier & Wholesale and Broadband segments.
PTCL Group Performance
Despite a net loss of Rs. 8.5 billion, the PTCL Group recorded a revenue of Rs. 90.9 billion for 2023, marking a significant 26.8 percent increase from the same period last year. The Group’s performance was affected by Rupee devaluation in the first quarter, resulting from unhedged FOREX liabilities. However, the exceptional performance in various segments, including fixed broadband, mobile data, business solutions, and banking services, contributed to the revenue growth.
Focus on PTCL Consumer Business
In the fixed broadband business, PTCL achieved an impressive 17.2 percent revenue growth year-on-year. Their flagship FTTH brand, ‘Flash Fiber,’ saw significant net subscriber additions and a 106.5 percent increase in revenue. The IPTV segment also experienced a 5.8 percent revenue growth. However, voice and wireless revenue streams faced challenges due to OTT services and tough competition from cellular operators.
PTCL Business Services Thriving
The business services segment maintained its momentum and market leadership in IP bandwidth, cloud, data center, and other ICT services. PTCL’s enterprise business achieved a 21.1 percent growth, while carrier and wholesale business attained a remarkable 34.9 percent overall revenue growth. International voice revenue also rose by 18.6 percent year-on-year. Despite the challenging economic environment, Business Solutions revenue grew significantly by 27.4 percent.
Driving Digital Pakistan
As the national telecom carrier and connectivity backbone, PTCL Group remains committed to delivering innovative solutions to promote a ‘Digital Pakistan.’ A strategic partnership with Vodafone enables the introduction of industry-leading IoT products, services, and solutions to the Pakistani market, fostering digital enablement and connected services adoption.
Ufone and U Bank Success
Ufone, part of PTML, experienced a 22.4 percent YoY revenue increase, with a subscriber base of 24.5 million. Network modernization efforts contributed to improved customer experiences. Ufone introduced attractive Data Roaming Offers for prepaid customers traveling to Saudi Arabia and upgraded its digital wallet ‘UPaisa‘ for enhanced user convenience.
U Bank, PTCL’s microfinance and branchless banking subsidiary, achieved remarkable growth, with a 96.5 percent revenue increase and an impressive 27.9 percent growth in net profit. The bank remains committed to financial and social inclusion, providing exceptional services across various banking domains.
Challenges and the Way Forward
The business landscape in 2023 continues to be influenced by macroeconomic challenges that arose in the previous year. Escalating energy and fuel tariffs, delays in LC openings, Rupee devaluation, rising interest rates, and additional super tax have impacted the sector’s profitability. To address these issues, policy interventions by the Government are necessary to support the telecom industry and provide relief.
