PTCL Posts Half Yearly Profit
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 Wednesday.
In this article, we will discuss the half-yearly financial results of Pakistan Telecommunication Company Limited (PTCL) for the period ending June 30, 2023. PTCL is known as the leading telecom and ICT services provider in Pakistan, offering a wide range of communication and internet services to customers across the country.
PTCL’s Financial Performance
PTCL has achieved remarkable financial performance in the first half of 2023. The company reported an operating profit of Rs. 2.9 billion, indicating a significant growth of 57 percent compared to the previous year. Moreover, PTCL posted a net profit of Rs. 6.9 billion, showing a remarkable increase of 34.5 percent compared to the same period last year.
The growth in PTCL’s net profit can be attributed to several factors. One of the key contributors is the increase in non-operating income due to translation gain on the company’s forex denominated receivables. Additionally, the gain on disposal of obsolete assets resulting from the upgrade and fiberization of the network has played a significant role in boosting the net profit.
While PTCL performed exceptionally well, the PTCL Group faced some challenges. The Group reported a net loss of Rs. 8.5 billion. However, the Group’s revenue stood at Rs. 90.9 billion, marking a growth of 26.8 percent compared to the same period last year. The significant devaluation of the Pakistani Rupee in the first quarter negatively impacted the Group’s profitability as it had unhedged FOREX liabilities.
Despite the net loss, the PTCL Group’s revenue growth is commendable, driven by exceptional performance across multiple segments. The fixed broadband, mobile data, business solutions, and banking services have played a pivotal role in the Group’s revenue increase.
PTCL Consumer Business
PTCL’s consumer business has witnessed notable growth in the fixed broadband segment. The company achieved a 17.2 percent increase in revenue compared to the same period last year. The flagship FTTH brand, ‘Flash Fiber,’ has strengthened its position with significant net subscriber additions and aggressive expansion of the fiber network throughout the country. This has contributed to a remarkable 106.5 percent increase in FTTH revenue.
However, the voice and wireless revenue streams have experienced a decline due to the impact of over-the-top (OTT) services and fierce competition from cellular operators. Nevertheless, the IPTV segment has shown a 5.8 percent revenue growth year-on-year.
PTCL Business Services
PTCL’s business services segment has maintained its momentum and market leadership in various sectors. The enterprise business achieved a growth of 21.1 percent compared to the previous year. The carrier and wholesale business also experienced significant revenue growth of 34.9 percent. International voice revenue increased by 18.6 percent.
Despite the challenging economic environment, PTCL’s Business Solutions revenue has shown a remarkable 27.4 percent year-on-year growth. The company’s focus on IP bandwidth, cloud services, data centers, and other ICT services has contributed to its success in this segment.
PTML – Ufone
Ufone, a subsidiary of PTCL, has continued its growth trajectory. The company recorded an impressive 22.4 percent increase in revenue and achieved a subscriber base of 24.5 million. Ufone’s network modernization activities have enhanced the customer experience, and the introduction of best-value data roaming offers has further benefited prepaid customers traveling to Saudi Arabia.
Ufone is also upgrading its IR services by launching various LTE products in collaboration with roaming partners in major destinations. The company has also improved its digital wallet, ‘UPaisa,’ by introducing a QR Code Scan feature on its digital app, providing users with convenient financial transactions.
U Bank, the microfinance and branchless banking subsidiary of PTCL, has shown remarkable growth despite a challenging macroeconomic environment. The bank achieved a revenue growth of 96.5 percent and a net profit growth of 27.9 percent compared to the corresponding period of the previous year.
With a strong balance sheet position, U Bank remains committed to financial and social inclusion. The bank serves a diverse clientele across the country through various banking services, including rural retail banking, corporate finance, investment banking, Islamic banking, urban retail banking, corporate banking, and digital banking.
The business landscape in 2023 poses several challenges for the telecom sector in Pakistan. The escalating energy and fuel tariffs have made it difficult for telecom operators to provide high-quality services at affordable prices. Delays in LC opening have also affected network expansion plans.
The significant devaluation of the Pakistani Rupee, coupled with rising interest rates and additional super tax, has impacted profitability in the sector. The government’s policy intervention is necessary to alleviate these challenges and provide relief to the telecom industry.
Pakistan Telecommunication Company Limited (PTCL) has demonstrated robust financial performance in the first half of 2023. With a substantial increase in net profit and revenue growth in various segments, PTCL has solidified its position as a leading telecom and ICT services provider in Pakistan. The company’s commitment to innovation and customer satisfaction is driving the growth of a ‘Digital Pakistan.’