Pakistan Telecommunication Company Limited (PTCL) Group’s revenue for 1st quarter 2018 has grown year on year by 4 percent to Rs 30 billion compared to Rs 28.827 billion during the same period of 2017.
The financial results for the quarter ended March 31, 2018 were announced at its Board of Directors meeting, which were later shared with media here on Thursday.
Addressing a press conference Dr. Daniel Ritz President & CEO of PTCL Group said that as a result of positive contribution by all group companies, the growth in revenue was made possible. Operating profit remained Rs 2.25 billion in Q1, 2018 compared to Rs 1.577 billion during the same period of last year 2017, hence registering 43 percent growth. Operating margin remained 7 percent in Q1 2018 compared to 5 percent in Q1, 2017. Net profit higher by 28% than last year normalized for one-offs and at constant currency rates.
After arresting the rate of revenue decline in 2017, PTCL Q1, 2018 revenue of Rs 17.579 billion has registered growth for the first time since Q2 2014 and posted an increase of 1% over same quarter of last year when compared to Rs 17.473 billion.
The 1 percent increase in revenue mainly contributed by growth in fixed broadband DSL, CHARJI and Corporate segment. PTCL operating profit lower by 3 percent from Rs 2.381 billion in Q1, 2017 to Rs 2.229 billion in Q1, 2018 YoY due to higher marketing and customer acquisition cost spent at the start of the year.
PTCL net profit was lower by 14 percent from Rs 2.11 billion in Q1, 2017 to Rs 1.818 billion in Q1, 2018 (YoY) driven by lower non-operating income due to VSS, PTET funding and CAPEX payments during last year. If normalized for one-offs this variance will reduce to 12 percent, said PTCL officials.
PTCL revenue remained -9 percent in Q1, 2015, -7 percent in Q1, and 2016, -3 percent in Q1, 2017 and one percent in Q1, 2018.
Growth in DSL was mainly due to increase in subscribers and ARUP by 4 percent and 5 percent respectively. PTCL’s flagship Fixed Broadband DSL service accelerated its momentum and posted revenue growth of 9 percent over Q1, 2017. Investments made in Charji/LTE during last years have yielded positive results with YoY revenue growth in double digits. Charji subscribers’ growth remains more than double YoY. Retail registered one percent growth and remained Rs 11.364 billion in Q1, 2018 compared to Rs 11.252 in Q1, 2017.
PTCL claimed significant growth in corporate services by providing enterprise solutions e.g. cloud and connectivity services as it remained Rs 1.703 billion in Q1, 2018 comapred to Rs 1.459 in Q1, 2017 registering 17 percent growth (YoY).
However decline in wholesale was witnessed due to continued conversion of subscribers to OTT and cellular services resulting in declining voice traffic volumes as it remained Rs 4.512 billion in Q1, 2018 compared to Rs 4.762 billion in Q1, 2017.
Ufone revenue has improved by 4 percent YoY despite tough competition in cellular market.
UBank, a microfinance banking subsidiary of PTCL, has shown very high growth and almost doubled its revenue over Q1, 2017. PTCL Group’s operating profit for the quarter improved by 27 percent over Q1 2017 operating profit, normalized for one offs.
PTCL Group’s bottom-line has, however, declined by 10 percent to Rs 1 billion mainly due to adverse impact of currency devaluation. Adjusted for Forex impacts and other one-offs, bottom line of the Group would have been 28% higher than last year.
Corporate business has also shown significant growth of 17 percent over Q1, last year. There is, however, decline in domestic and international voice revenues due to continued conversion of subscribers to OTT and cellular services resulting in declining voice traffic volumes.
PTCL’s operating and net profit is lower by 3 percent and 14 percent compared with Q1 of last year mainly due to higher marketing and customer acquisition cost spent at the start of the year and lower non-operating income due to reduced funds on account of VSS and CAPEX investment during last year respectively.
In 2018, PTCL continues its comprehensive Network Transformation project with several additional exchanges fully transformed in different parts of Pakistan. To provide customers with better internet experience and higher speeds, EVO is being replaced with Charji 4G LTE.
PTCL also partnered with Netflix, the world’s leading streaming content provider, to give customers access to quality international content, thus further enhancing their viewing experience.
PTCL signed new Cloud Infrastructure Services and Connectivity Services agreements while also enhancing its Enterprise Solutions and Cloud Services portfolio by signing reseller partnership agreements with global IT companies. PTCL and Telenor Pakistan, for the third consecutive year, have entered into a fiber leasing agreement, under which PTCL will deliver fiber footprint to Telenor Pakistan for 2018.
To uplift the brand and to play its due role as a national company supporting national sports, PTCL sponsored Hockey Cup 2018, Pakistan T20 Team in New Zealand series and Islamabad United Team in PSL3. PTCL has been recognized by Brand Finance as the “Fastest Growing Brand in Pakistan”.