The country’s leading telecom and ICT services provider, Pakistan Telecommunication Company Limited (PTCL) announced its financial results for the nine months period ended on September 30, 2021, at its Board of Directors’ meeting on October 18, 2021.
The company posted a significant 7.3 percent growth in its revenues, owing to a robust commercial strategy that cements its market standing.
PTCL Group has reported an increase of 136 percent in its profits during the period. According to a notification to the Pakistan Stock Exchange (PSX), the company reported a profit of Rs. 3.7 billion in the first nine months as compared to a profit of Rs. 1.56 billion in the same period last year.
- PTCL Group posted a revenue of Rs. 102.4 billion in the first nine months of 2021 which is 7 percent higher as compared to Rs. 95.64 billion in the same period of last year.
- U Bank continued its growth momentum and has achieved a 23 percent growth in revenue.
- PTML (Ufone) also posted revenue growth of 4.6 percent despite stiff competition in the market.
- PTCL’s revenue of Rs. 57.3 billion for the nine months period is 7.3 percent higher than the same period last year, mainly driven by Broadband and Corporate & Wholesale business segments.
- The company has posted an operating profit of Rs. 3.7 billion, which is higher by 44.3 percent compared to the same period of last year.
- Net profit of Rs. 5.7 billion has significantly increased by 39.2 percent from last year.
The company is upgrading its existing infrastructure and network, besides expanding FTTH across the country to offer seamless connectivity for a greater customer experience. Prompt deployment of FTTH and strong performance in Corporate and Wholesale segments are the cornerstone in PTCL’s topline growth, which along with a focus on cost optimization program, has significantly increased the company’s profitability.
PTCL Consumer Business: Steady Growth & Performance
PTCL Consumer Business showed consistent performance as it reports the 5th straight quarter of growth. During the 9 months of 2021, the company’s Fixed Broadband business grew by 12.7 percent YoY, whereas the PTCL IPTV segment also grew by 13.5 percent. Within the broadband business, the groundbreaking PTCL Flash Fiber, Fiber-to-the-Home (FTTH) service showed a tremendous growth of 57.5 percent, whereas PTCL Charji /Wireless Broadband Segment grew by 17.8 percent. Voice revenue stream has declined on account of lower voice traffic and continued conversion of customers to OTT services.
Business Services: Sustained Growth Momentum
The business services segment continued its momentum, sustaining market leadership in IP Bandwidth, Cloud, Data Center, and other ICT services segments. PTCL’s Corporate business grew by 12.9 percent compared to the same period last year, while Carrier and Wholesale business continued its growth momentum and achieved 10.3 percent overall revenue growth. International voice revenue has shown a declining trend like domestic voice revenue.
Being the national telecom carrier and connectivity backbone in Pakistan, PTCL Group strives to provide innovative solutions to accelerate growth for a ‘Digital Pakistan’ through robust telecommunication infrastructure and enhanced customer experience.
PTML – Ufone: Beginning of a New Era
On the wireless portfolio, PTML (Ufone) acquired an additional 9 MHz 4G spectrum in the 1800 MHz Band in NGMS spectrum auction in September 2021, fulfilling its commitment to provide enhanced customer experience through quality services across Pakistan. The additional spectrum will meet the increasing demand for wireless data products amongst the consumers in Pakistan, in addition to providing innovative products and services.
After the acquisition of the 4G spectrum, Ufone intends to fully modernize its network and further enhance its coverage across Pakistan. The network up-gradation and modernization have already started paying dividends with significant improvement in data user experience for customers.
In addition to the acquisition of 4G spectrum in Pakistan, Ufone has also renewed and acquired more spectrum in Azad Jammu & Kashmir/Gilgit Baltistan to bolster its existing service. Through this, it has reaffirmed its commitment to provide quality data services to the people of Pakistan and AJK/GB.
UBank, the microfinance and branchless banking subsidiary of PTCL, continued its growth trajectory and has achieved 23 percent growth in its revenue over the corresponding period last year by increasing its advanced portfolio and treasury investments.
The bank grew its funding book to Rs. 70 billion by leveraging on its deposit and corporate finance arms, which is in line with the bank’s ambition to maintain its superior liquidity position. Major strategic initiatives undertaken by the bank include venturing into the Low-Cost Housing, International Remittance, and Islamic Banking space. The bank plans to invest in technology to make the most of the opportunities available on the digital banking front.