PTCL Group, a leading telecom and ICT services provider in the country, announced its financial results for the nine months that ended September 30, 2022, at its Board of Directors’ meeting, which was held in the United Arab Emirates on October 13, 2022.
Both fixed and wireless streams performed well during the third quarter for the PTCL Group.
Performance of PTCL Group’s finances
The company has generated revenue of PKR 110.5 billion, up 8% YoY, driven by strong growth in fixed broadband, mobile data, wholesale, and business solutions.
There was an increase in fuel and power prices, a devaluation of the Pakistan Rupee against the US dollar, higher interest rates, and other costs associated with the acquisition of 4G spectrum and related network deployments that undermined the Group’s profitability. There was a net loss of Rs 5.6 billion for the Group.
In terms of revenue growth, PTCL posted an increase of 6.7% over last year.
As compared to last year’s same period, PTML’s (Ufone) revenue increased by 5.4%.
Over the course of the past year, U Bank has enjoyed a 29.8% growth in revenue. Â
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Results of PTCL’s financial operations
In the period under review, PTCL’s revenue was Rs 61.1 billion, 6.7% higher than that in 2021, mainly due to growth in its broadband and wholesale & business solutions segments.
In spite of the significant rise in power and fuel tariffs, the company’s operating profit remained under pressure in the second quarter to Rs 3.2 billion.
In comparison with the same period last year, Rs 8.2 billion of net profit was 45.2% higher. Increasing non-operating income has helped the Company turn a 12.4% decrease in operating profit into a 45.2% increase in net profit, thanks to translation gains on forex-denominated assets, dividends from a subsidiary, and the disposal of obsolete assets as a result of upgrading and fiberizing the network.
PTCL Consumer Business
 During the first 3 quarters of the year, the company’s fixed broadband business grew by 11.7% YoY. A significant increase of 98.7% has been reported in Flash Fiber’s revenues, the company’s premium FTTH service. A growth of 8.6% was also recorded in IPTV year-over-year. As voice traffic has declined and customers have turned to OTT services, voice revenue has declined.
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 By providing seamless fixed broadband service, including our fastest internet service in Pakistan, PTCL continues to deliver consistently high customer satisfaction. As the company continues to capitalize on the growing demand for internet and data services, PTCL has expanded its FTTH services to 35 cities.
PTCL Business Solutions
While continuing momentum with overall YoY revenue growth of 8.8%, the business solutions segment sustained its market leadership in IP bandwidth, Cloud, Data Center, and other ICT services. PTCL’s corporate business grew by 13.0% as compared to last year. Within the wholesale business segment, carrier revenue grew by 16.2% but the overall wholesale segment revenue has declined as a result of the closure of certain international IP leased circuits. International revenue, helped by the favorable impact of currency devaluation, has increased by 13.9% over the last year.
PTML (Ufone) Financial Performance
Comparing the same period of last year with the current one, PTML’s (Ufone) revenue increased by 5.4%.
Through continued investment in 4G coverage and the conversion of customers to 4G, data remains the main driver of Ufone’s growth. Therefore, Ufone gained 3.5 million 4G subscribers this year.
In spite of the recent floods in the country and an increase in Advance Income Tax (AIT), Ufone has maintained its topline growth.
It is important to note that Ufone’s bottom line has been adversely affected by external factors including the devaluation of the Pakistani rupee, the rise in interest rates, and an increase in power/fuel tariffs.
Ufone’s initial entity rating for the second quarter has been AA-/A-1 (Double-A Minus/A-1) with a stable outlook. By assessing Ufone’s financial strength through independent ratings, stakeholders are demonstrating their confidence in Ufone’s credit quality and fundamental protection factors.
Highlights of U Bank
In spite of the challenging macroeconomic environment, further exacerbated by the recent flood, UBank, the subsidiary of PTCL that provides microfinance and branchless banking, continued to grow and achieved revenue growth of 29.8% over the last year by increasing its advances and investment portfolio. In addition to diversifying its asset classes and funding streams, the bank ensured positive bottom-line effects as its balance sheet footing reached Rs 122 billion. As Ubank emerges this year as a Retail Challenger Bank, it will provide a range of bank services tailored to meet the unique needs of its diverse clientele, including rural retail banking, corporate finance, and investment banking, Islamic banking, urban retail banking, corporate banking, and digital banking. Ubank has six business canvases, which include Rural Retail Banking, Corporate Finance & Investment Banking, Islamic Banking, and Corporate Banking. As part of its mission of financial and social inclusion, the bank is evolving its business model to include more segments and customer classes into its banking net and expand its business model.
Corporate Social Responsibility
As a Pakistani company and a national carrier, PTCL Group has significantly contributed to flood relief and rehabilitation across the country during the recent floods. In addition to donating to the PM Flood Relief Fund and collaborating with NGOs, PTCL has opened its medical centers nationwide to provide emergency health and care, and Ufone 4G has offered free calls to its customers so they can remain connected to family and friends.
