PTCL Groups sees an increase in profits of more than 350 percent YoY for Q3 2020
With the financial report for the third quarter of the year being released by most companies, Pakistan’s leading telecommunications’ company, PTCL has also reported its own financial standings for Q3 2020.
According to the reports, PTCL’s profits have taken a big hit in the first three quarters of 2020; profits are down by 41.6 percent which amounts to a profit of only Rs. 1.56 billion which pale in comparison to the Rs. 2.67 billion made in the same three quarters of 2019.
The third quarter, however, seems to be much better than the first two; July-September 2020 for PTCL group has amounted to a profit of Rs. 1.52 billion, more than 3 times when compared to the first two quarters.
PTCL Group’s revenues have begun to show signs of improvement as the initial shock of a worldwide pandemic wears off. Q3 2020 revenues have been by 3.4% for the same quarter last year.
PTCL’s standalone profit for the third quarter dropped by 18.56 percent as compared to the Q3 of last year.
PTCL Group, as a whole company, has made 2.4 percent less profit in the first nine months of this year as compared to the same period of last year. Rs. 95.64 billion were reported for Q1-Q3 2020 and Rs. 97.96 billion were recorded for Q1-Q3 2019.
When normalisation for COVID-19 is applied, the Group’s revenue 4.2 percent higher YoY. This normalisation also considers certain regulation changes that effected Ufone.
PTCL wirelines, in particular showed signs of generating more revenue; they have recorded the highest ever sales since the Q3 of 2014 for their Broadband connection instalments. Fiber-to-the-Home (FTTH) sales have been increasing at a steady rate, adding to the overall profit of the company. The wireless (Charji) segment has also reported a growth rate of 21 percent when compared to last year, and the retail business of the company has also reported a 6% growth between quarters (from Q2 2020 to Q3 2020).
International revenue and Corporate & Wholesale revenue have both grown by 6 percent when compared to last year. PTCL has also collaborated with SCO to monetise CPEC cross-border connectivity. They have been managing capacity services and have successfully maintaining their dominant position when it comes to IP bandwidth.
PTCL Group has also taken strides to create an effective Coronavirus relief and support effort plan. Their various CSR efforts have gone a long way in helping the nation get through this global pandemic. They plan on introducing high-speed internet penetration in the country in support of the Prime Minister’s Digital Pakistan vision.
Based on their performance in the first three quarters, the VIS Credit Rating Company Limited (VIS) has given PTCL the entry ratings of ‘AAA/A-1+’. This reinforces the positive ratings from previous time period and, given a medium to long term rating of more than ‘AAA’, PTCL shows many positive signs of the high financial standings and low risk factors.