Pakistan Telecommunication Company Limited (PTCL), the country’s leading telecom and ICT services provider, has announced its financial results for the half-year that ended on June 30, 2019.
PTCL group posted a consolidated net profit of Rs. 2.34 billion, which is 9.86% higher than last year’s profit of Rs. 2.13 billion.
Despite tough economic conditions, PTCL Group’s financial performance has shown improvement over the period. Overall consolidated revenue of the group has shown a growth of 9% to Rs. 66.3 billion as compared with Rs. 61.08 billion in the same period last year.
Earnings per share of the company increased to Rs. 0.74 from Rs. 0.72.
This is the result of accelerated growth in the Ufone and Ubank services. Ufone’s revenue has increased by double digits YoY. Ubank, which is a subsidiary of PTCL, has shown significant growth of 50% in its revenue over the last year.
The cost of services was stated as Rs. 47.91 billion, up by 8% as compared with Rs. 44.36 billion last year. PTCL’s group’s operating profit improved by 20% as the result of the revenue growth.
PTCL, excluding its subsidiaries like Ufone and UBank, posted an unconsolidated profit of Rs. 3.80 billion, up by 3% compared with Rs. 3.68 billion in the same period last year.
PTCL revenue of Rs. 35.8 billion for the half-year is marginally (0.8%) lower than last year’s revenue of Rs. 36 billion.
The operating profit remained under pressure as compared to last year due to an increase in operating cost on account of hike in power tariffs and currency devaluation. However, non-operating income has increased due to higher income on investments as a result of an increase in interest rates. Other income of the company was stated at Rs. 3.2 billion against Rs. 1.91 billion in the previous year. The finance cost of the company has increased to Rs. 5.03 billion, which is up by 31.68% as compared with Rs. 3.82 billion.
The flagship fixed broadband services posted a revenue growth of 5%. The company continues its journey to upgrade top 100 exchanges under the Network Transformation Project (NTP) in different parts of Pakistan. For the 76 exchanges fully transformed to date in 12 cities, the YoY revenue growth is even higher at 13% and there is a 30% reduction in customer complaints.
Wireless revenue for the period has declined on YoY basis due to strong competition by cellular companies providing wireless data services. There is continued decline in domestic and international voice revenues due to continued conversion of subscribers to OTT, cellular services and illegal/grey traffic termination resulting in declining traffic volumes.
PTCL’s script at the bourse closed at Rs. 7.73, up by Rs. 0.03, with a turnover of Rs. 115,000 shares on Wednesday.
The corporate and wholesale business continued its growth momentum from a strong 2018 and has achieved double-digit revenue growth. PTCL has entered into a strategic partnership with Zong for network expansion, through the provision of PTCL’s VSAT services in remote and far-flung areas of Pakistan.