Pakistan Telecommunication Company Limited (PTCL), the leading telecom and ICT services providers in the country, has announced financial results for the nine months ended September 30, 2023. The announcement was made during the Board of Directors’ meeting held in Dubai on October 17, 2023.
In the first nine months of 2023, PTCL Group has maintained its strong performance, strengthening its status as Pakistan’s top integrated telecom service provider. Despite the challenging economic environment, the Group has achieved an impressive 26.3% increase in revenue compared to the same period last year. This substantial growth can be mainly attributed to outstanding performance in various sectors, including fixed broadband, mobile data, business solutions, and mobile banking services.
The business environment in 2023 remains affected by the unfavorable macroeconomic challenges that emerged in 2022. Increasing energy and fuel costs persist as hurdles for telecom companies, making it challenging to offer top-notch services to consumers at reasonable rates. Network expansion plans were also affected by the adoption of measures aimed at regulating foreign currency reserves. The substantial devaluation of the Pakistani Rupee during the first quarter, coupled with mounting interest rates and an additional super tax alongside regular corporate tax, has significantly affected profitability. To address the challenges being faced by the telecom sector, it is imperative that the government offers policy intervention to alleviate the impact.
PTCL Group Highlights
- PTCL Group’s revenue of Rs 139.6 billion in 2023 is 26.3% higher as compared to the same period of last year.
- The Group’s profitability was, among other factors, particularly affected by significant Rupee devaluation during the period as the Group has unhedged FOREX liabilities. The Group has posted a net loss of Rs 9.3 billion.
- PTCL continued its growth trajectory by posting 17.2% YoY revenue growth.
- PTML’s (Ufone) revenue grew remarkably by 24.3% YoY as compared to the same period of last year.
- Ubank has achieved a significant 80.3% growth in its revenue over the same period of last year.
- PTCL’s revenue of Rs 71.6 billion for the period is 17.2% higher than 2022, mainly driven by growth in Carrier & Wholesale, Enterprise, and Broadband segments.
- The company has posted an operating profit of Rs 4.2 billion with an impressive 29.6% growth over last year and a net profit of Rs 7.6 billion.
PTCL Consumer Business:
PTCL Fixed Broadband Business achieved significant revenue growth of 16.7% vs. last year. PTCL Flash Fiber remains the fastest-growing operator through the highest net adds contribution in the industry. This phenomenal growth has been possible through the aggressive expansion of PTCL Flash Fiber and dedicated customer experience throughout the country. PTCL Flash Fiber reported 104.9% revenue growth YoY. Moreover, IPTV segment has been further equipped with the addition of 50 channels reaching a total of 200 channels to cater growing customer TV viewing needs. Voice and Charji revenue streams continued the declining trajectory impacted by OTT services and competition from cellular operators.
PTCL Business Services:
The 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 31.8% as compared to last year, while carrier and wholesale business continued its growth momentum and achieved 29.2% overall revenue growth. International voice revenue has increased by 17.9% as compared to last year. Despite the current challenging economic environment, overall Business Solutions revenue has shown a remarkable 27% year-on-year growth.
As Pakistan’s primary telecom provider and the core of the country’s connectivity, PTCL Group is committed to providing creative solutions that propel the advancement of a ‘Digital Pakistan’. This is accomplished by building strong telecommunication infrastructure and offering a diverse range of services, all focused on elevating customer satisfaction and hastening progress in the nation. Ufone 4G|PTCL Business Solutions has partnered with DynaSys to support the IoT and Satcom needs of business partners. It will help achieve that objective by providing futuristic, innovative, and cost-effective solutions even in the remotest parts of the country. In addition, the company has joined hands with ChildLife Foundation to provide telecom services for the remote telemedicine facility in more than 200 telemedicine satellite and emergency centers across Pakistan. Moreover, PTCL and Board of Revenue Baluchistan signed an agreement for provisioning of IaaS Smart Cloud Services at PTCL’s Tier-III Data Center for Land Record Management System (LRMS) and Fiber Optic Connectivity at Facilitation Centers at different districts of the province.
PTML – Ufone 4G Highlights:
Ufone 4G for the first time in history has crossed a milestone mark of 25 million subscribers in Q3’23 and reported a 24.3% YoY revenue increase. Ufone 4G posted the highest net adds in the industry and led the industry in 4G acquisitions during the quarter. Our 4G base crossed the mark of 14 million for the first time in Sep’23. This growth has been possible due to better customer experience and digital engagement through multiple data-centric products and strategic partnerships with leading digital platforms. Ufone 4G continues its network modernization activities to provide unmatched customer experience across Pakistan.
The company has started transforming its flagship joint shops nationwide into Digital Lifestyle Experience Shops, aimed at delivering an end-to-end digital lifestyle experience to its customers. The joint shops are equipped to provide a comprehensive suite of world-class services, including a wide range of handsets, internet devices, repair & maintenance, exclusive discounts & value-added offers. Ufone’s Upaisa is now part of e&Money, UAE and MobilyPay, KSA Apps menu facilitating Pakistani diaspora to send money directly into UPaisa wallets by using these apps.
Ubank, microfinance and branchless banking subsidiary of PTCL, continued its growth trajectory and has achieved a remarkable 80.3% growth in revenue 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:
In the first nine months of 2023, PTCL Group actively engaged in various CSR endeavors to reinforce its role as a national carrier. These initiatives included a collaboration with GSMA, focusing on addressing Digital Gender Disparity through a workshop aimed at bridging the gender gap in mobile usage in Pakistan. Additionally, PTCL and Ufone 4G partnered with the Parks & Horticulture Authority (PHA) in Rawalpindi to carry out a tree planting campaign at Khajut on Murree Expressway. This effort aimed to promote environmental conservation and bolster the country’s resilience against climate change. Furthermore, in response to severe natural disasters in North African countries like Morocco and Libya, the Group spearheaded a significant CSR project. The initiative’s goal was to facilitate free calls connecting families in Pakistan with their affected loved ones in those crisis-stricken regions. Lastly, PTCL Group collaborated with ConnectHear, a social enterprise dedicated to empowering individuals with hearing impairments, to organize a sign language training session for its Customer Service Center. Demonstrating its commitment to social responsibility, PTCL Group actively contributes to the well-being of society.