PTCL posts double digital growth in operating, net profits

PTCL posts double digital growth in operating, net profits

Islamabad: Pakistan Telecommunication Company Limited (PTCL) has announced its financial results for the six months period ended June 30, 2019 at its Board of Directors’ meeting held in Islamabad on Wednesday.

Despite tough economic conditions, PTCL Group’s financial performance has shown marked improvement over comparative period. PTCL Group’s revenue for the half-year has grown year-on-year (YoY) by 9% to Rs66.3 billion as a result of an accelerated growth in the Ufone and Ubank revenues. Ufone revenue has increased double digits YoY, Ubank, a microfinance banking subsidiary of PTCL, has shown significant growth of 50% in its revenue over last year. PTCL Group’s operating profit and net profit for the half-year have improved by 20% and 10% respectively as a result of the revenue growth.

PTCL revenue of Rs. 35.8 billion for the half-year is marginally lower than last year (0.8%). PTCL’s flagship Fixed Broadband services posted revenue growth of 5%. PTCL continues its journey to upgrade top 100 exchanges under Network Transformation Project (NTP) in different parts of Pakistan. For the 76 exchanges fully transformed to date in 12 cities, YoY revenue growth is even higher at 13% and there is a 30% reduction in customer complaints.

Corporate & Wholesale business continued its growth momentum from a strong 2018 and has achieved double digits revenue growth. PTCL has entered into a strategic partnership with Zong for network expansion, through provision of PTCL’s VSAT services in remote and far-flung areas of Pakistan.

Wireless revenue for the period has declined on YoY basis due to strong competition by the 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 voice traffic volumes.

PTCL has posted a Net Profit after Tax, which is 3% higher than last year. Operating profit for the period remained under pressure compared to last year mainly due to increase in operating cost on account of significant hike in power tariffs and currency devaluation. However, non-operating income has increased due to higher income on investments as a result of increase in interest rates.