PTCL Group Posts 45.2% Profit Growth in the first 3 Quarters of 2022

By Fizza Akbar ⏐ 3 years ago ⏐

3 min read

At its Board of Directors meeting, Pakistan Telecommunication Company Limited (PTCL), the country’s main telecom and ICT services provider, published its financial results for the nine months ending September 30, 2022.

PTCL reported a 45.20 percent rise in profits throughout the time. The firm declared a profit of Rs. 8.22 billion in the first nine months, compared to a profit of Rs. 5.66 billion in the same time the previous year, according to a notice to the Pakistan Stock Exchange (PSX).

Non-operating income increased due to translation gain on the company’s forex-denominated assets, dividend income from a subsidiary, and gain on disposal of obsolete assets due to network upgrade and fiberization, helping to turn a 12.4 percent decrease in operating profit into a 45.2 percent increase in net profit.

The period’s Rs. 61.1 billion revenue is 6.7% higher than the previous year’s revenue of Rs. 57.28 billion, owing mostly to growth in the broadband and wholesale & business solutions divisions.

The firm reported an operational profit of Rs. 3.2 billion was down from the previous year, mostly owing to an increase in operating costs due to a considerable rise in electricity and fuel bills.

PTCL Group maintained its growth trajectory in the third quarter, with its fixed and wireless streams doing well.

Financial Performance of the PTCL Group
The group’s revenue climbed by 8% yearly to Rs. 110.5 billion, owing mostly to excellent consumer segment growth led by fixed broadband, mobile data, wholesale & business solutions, and microfinance services.

The Group’s net loss was Rs. 5.6 billion, compared to a profit of Rs. 3.68 billion in the previous year.

PTCL Group’s Profitability was under pressure due to considerable increases in power and fuel pricing, depreciation of the Pakistan Rupee versus the USD, increased borrowing rates, and other expenditures linked with the acquisition of the 4G spectrum and accompanying network development.

PTCL’s sales growth rate increased by 6.7% year on year. PTML’s (Ufone) revenue increased by 5.4% compared to the previous year’s quarter. U Bank increased its income by 29.8% over the previous year.

Consumer Business PTCL
The company’s fixed broadband business gained 11.7% year on year over the first three quarters. Within the broadband industry, revenues from Flash Fiber, the company’s premium FTTH solution, increased by 98.7%. IPTV grew by 8.6% year on year. The voice income stream has declined due to decreasing voice traffic and ongoing customer migration to OTT services.

PTCL continues to provide an improved customer experience with its seamless fixed broadband services, including the fastest internet connection in Pakistan through the Flash Fiber brand. PTCL has expanded its FTTH services to 35 locations, and the subscriber count has more than quadrupled year on year as the firm continues to capitalize on the increased demand for internet and data services.

PTCL Business Solutions
The business solutions category maintained its market leadership in IP bandwidth, Cloud, Data Centers, and other ICT services while maintaining pace with a total YoY revenue increase of 8.8%. PTCL’s corporate business increased by 13.0% compared to the previous year.

Carrier revenue increased by 16.2% within the wholesale business sector, while total wholesale income decreased due to the shutdown of certain international IP leased lines. International revenue has climbed by 13.9% in the last year, aided by the positive impact of currency depreciation.

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