PTCL Group Posts Double Digit Revenue Growth of 23%

Islamabad- Pakistan Telecommunication Company Limited (PTCL), the leading provider of telecom and ICT services in the country, has announced its financial results for the quarter ended March 31, 2023. The announcement was made during a Board of Directors’ meeting held in Islamabad on April 17, 2023.

During the first quarter of 2023, PTCL Group sustained its momentum and strengthened its position as the leading integrated telecom service provider in Pakistan. Despite the ongoing challenging macroeconomic conditions, the Group achieved a 23.2% growth in its revenue compared to the same period of last year. This substantial growth in revenue is primarily attributable to strong performance in the fixed broadband, mobile data, business solutions, and banking services.

The adverse effects of macroeconomic challenges that emerged in the year 2022 continued to affect businesses in 2023 as well. With continuing increase in the energy and fuel tariffs, telecom operators are faced with significant challenges to provide quality services to their consumers at an affordable price point. Pakistan’s balance of payment issues and restrictions imposed by the State Bank of Pakistan on LC opening have impacted the network roll-out timelines of the operators and also resulted in a significant devaluation of PKR against foreign currencies. This deteriorating Rupee-Dollar parity, rising interest rates and additional taxes on telecom operators, over and above the normal corporate tax, have severely affected the profitability. To mitigate the effects of these challenging issues, policy intervention by the Government is required to provide much needed relief to the sector.

PTCL Group Highlights

PTCL Group’s revenue of Rs 43.2 billion in Q1, 2023 is 23.2% higher as compared to the same period of last year.
The Group’s profitability was, among other factors, particularly affected by the significant bout of devaluation as the Group has unhedged FOREX liabilities. The Group has posted a net loss of Rs 5.7 billion.
PTCL continued its growth by posting 17.1% YoY revenue growth in Q1, 2023.
PTML’s (Ufone) revenue grew by 20.0% YoY as compared to Q1, 2022.
U Bank continued its growth momentum and has achieved a 73.0% growth in its quarterly revenue over the same period of last year.

PTCL Highlights

PTCL’s revenue of Rs 22.95 billion for the quarter is 17.1% higher than Q1 2022, mainly driven by growth in carrier & wholesale and broadband segments.
The company has posted an operating profit of Rs 1.5 billion with a 54.7% growth over last year and a net profit of Rs 5.5 billion for the quarter. Increase in non-operating income, due to translation gain on the Company’s forex denominated receivables, dividend income from a subsidiary and gain on disposal of obsolete assets due to upgrade and fiberization of network, played a significant role in achieving 187.2% increase in the company’s net profit as compared to same period of last year.

PTCL further strengthened its flag ship FTTH brand, ‘Flash Fiber’, by acquiring the highest net adds in the industry, this was possible through exceptional customer experience and aggressive expansion of fiber network across the country. The rapid rollout of FTTH and strong performance in the carrier & wholesale segments ensured PTCL’s topline growth.

PTCL’s recently launched an OTT streaming platform ‘SHOQ’, that provides premium entertainment, sports, and news content to all data users, is bridging the gap for need of high-quality content at an affordable cost. Moreover, PTCL Group partnered with PUBG Mobile and launched the biggest E-Sports gaming competition through its gaming platform ‘GameKey’. The Group also partnered with DE-CIX to establish Internet Exchange, and Vodafone to introduce end-to-end IoT solutions in Pakistan. PTCL marked International Women’s Day 2023 by launching a dedicated voice package, called SheTalks, for its female customers.

PTCL Consumer Business: Steady Performance

The company’s fixed broadband business achieved 17.4% growth in revenue YoY which is primarily attributable to a two-fold increase in Flash Fiber’s revenue and subscribers over comparative quarter. IPTV segment also showed a 6.2% revenue growth YoY. Voice and wireless revenue streams have seen a decline due to continued conversion of customers to OTT services and tough competition from cellular operators.

PTCL Business Services:

Business services segment continued its momentum sustaining market leadership in IP bandwidth, cloud, data center, and other ICT services segments. PTCL’s enterprise business grew by 12.1% as compared to last year, while carrier and wholesale business continued its growth momentum and achieved 36.9% overall revenue growth. International voice revenue has increased by 22.7% as compared to last year. Despite the slowdown of economic activity, overall Business Solutions revenue has shown a remarkable growth of 27.2% on year-on-year basis.

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 a diverse portfolio of services with enhanced customer experience. PTCL collaborated with the Ministry of Federal Education to develop an app called Teleschool Pakistan, which aims to provide free digital learning for students. The launch of this app by the Prime Minister of Pakistan in March attracted widespread attention across Pakistan.

PTML – Ufone Highlights:

Continuing its growth trajectory, Ufone recorded an impressive 20.0% YoY increase in its revenue. Ufone has recently gained a momentous milestone of achieving 24 million subscribers resulting in a 0.4 percentage point increase in market share. Network modernization activities, carried out in the first quarter of 2023, resulted in better customer experience for Ufone subscribers. With this improved customer experience, growth in engagement acquisition numbers and better data speeds, Ufone has achieved the 2^nd highest customer net adds in the industry during the first quarter. Ufone 4G recently launched a WhatsApp service for a hassle-free customer experience, collaborated with Nestlé Pakistan Limited to establish an advanced customer service solution for Ufone’s BPO operations and partnered with Islamabad United for PSL8.

U Bank Highlights:

Despite an extremely tough macroeconomic environment, U Bank, the microfinance and branchless banking subsidiary of PTCL, continued its growth trajectory and has achieved a remarkable 73.0% growth in revenue and an impressive 64.5% growth in net profit over the comparative quarter of last year, while maintaining a strong balance sheet position. The bank stands resolute in its commitment towards financial and social inclusion, utilizing its extensive outreach to provide exceptional services to a diverse clientele across the length and breadth of the country through its rural retail banking, corporate finance & investment banking, Islamic banking, urban retail banking, corporate banking, and digital banking canvases.

Corporate Social Responsibility:

During the first quarter of 2023, PTCL Group undertook various CSR initiatives to strengthen its position as a national carrier. Amongst these initiatives, Ufone 4G proudly collaborated with ConnectHear to facilitate communication and socialization for the deaf community. The initiative perfectly resonates with Ufone 4G’s brand philosophy of inclusivity, under which we strive to foster equality and shared growth.

MMBL, U Microfinance Bank sign MoU to offer Housing Finance Solutions for their Employees

Islamabad – Mobilink Microfinance Bank Limited (MMBL), Pakistan’s largest digital bank, and U Microfinance Bank Ltd. (U Bank), Pakistan’s fastest-growing microfinance bank, have entered into a strategic partnership for providing housing finance facility for their employees.

The MoU was signed between Ghazanfar Azzam, President & CEO – MMBL, and Kabeer Naqvi, President & CEO – U Microfinance Bank, at a ceremony held in Islamabad, in the presence of senior officials from both organizations. Under this partnership, U Bank and MMBL employees can seek housing finance from each other. Eligible employees would have the opportunity to access affordable housing finance of up to PKR 3 Million to purchase a new house, flat, apartment, or plot for construction, as well as to construct a house on a pre-owned plot or add an extension to an existing housing unit. The loan application process has been simplified to facilitate fast-track processing and efficient disbursement of the loaned amount.

“Financial inclusion is not merely a customer-facing ambition but rather encompasses any and all people who wish to upgrade their quality of living through economic empowerment”, said Ghazanfar Azzam, President & CEO, MMBL. “As an employer of choice, we are vigilant of opportunities to holistically support our greatest asset- people, as much as possible. This partnership with U Bank will help enable our valued human resources with financial security during the uncertain economic conditions of the modern era,” remarked Azzam.

Also sharing his thoughts, Kabeer Naqvi, President & CEO – U Microfinance Bank said, “Our people are our most valuable asset. We aim to continue to provide services which improve their wellness and living standards. They are at the heart of who we are. We are pleased to collaborate with MMBL to facilitate employees on both sides. This also reaffirms U Bank’s belief that the microfinance industry as a whole can synergize and work in harmony to attain mutual goals.”

With influential positions in the market and reputations for exceptional employee culture, both MMBL and U Bank have been at the forefront of several initiatives driven toward the sustainable development of their customers and employees.

PTCL Group Pledges 1.75 billion to Support Flood Affectees

Karachi– PTCL Group, country’s largest telecom services provider, has come forward to aid communities affected by floods across various provinces of Pakistan through a relief package worth PKR 1.75 billion.

The package includes donation to the Prime Minister’s Relief Fund, NGOs, provision of free calls in flood affected areas, housing loans to displaced people and medical facilities.

PTCL Group will be providing medical services to affectees in its Health Centers, where a total of 13 doctors and 27 paramedical staff in 8 districts will perform their duties. To further extend Group’s support, Ufone 4G has announced free calls for people in the flood affected communities so that they can keep them connected with their families & friends, and to help them establish contact with the aid agencies and the Government. Moreover, U Microfinance Bank has pledged towards providing low-cost house loans for flood-affected families to rebuild their homes.

In addition to this, PTCL Group has decided to contribute to the Prime Minister’s Flood Relief Fund in order to support Government of Pakistan’s efforts for the rehabilitation of the communities and also donate to various leading aid agencies working in Balochistan and Sindh provinces to provide immediate relief assistance in the affected areas.
PTCL Group’s employees and staff will voluntarily give donation that will be matched by the organization and the total amount will be donated to a leading charity.

Sharing his thoughts on pledging support, Hatem Bamatraf, President and Group CEO, PTCL & Ufone, stated; “These are trying times for millions of people across Pakistan, with everything including lives, shelter and sources of income taken away by one of the worst natural calamities in modern times. At a time like this, a collective responsibility falls on individuals and local organizations alike to stand with their brethren in assisting their journey of rehabilitation. At PTCL Group, we are humbled to play our role in providing relief and support in every area that we can. During this crisis, PTCL Group stands with the affected people and is committed to support individuals, their families and communities countrywide.”

Flooding across Sindh, Khyber Pakhtunkhwa, Punjab and Balochistan have impacted millions of people with lives lost, properties destroyed, and sources of income wasted for families in various areas. In this time of need, PTCL Group is once again stepping up to shoulder the responsibility of aiding its people in a variety of ways.