ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL), the country’s leading telecom and ICT services provider, announced its financial results for the six months ending June 30, 2023. Despite the prevailing challenging macroeconomic conditions and inflationary pressures, PTCL Group achieved revenue growth of 26.8% compared to the same period last year. The growth is attributed to exceptional performance across various segments, including fixed broadband, mobile data, business solutions, and banking services.
The business landscape in 2023 has been affected by adverse macroeconomic challenges, such as escalating energy and fuel tariffs, which have posed ongoing obstacles for telecom operators. These challenges have made it difficult to provide high-quality services at affordable prices. Delays in LC opening have also impacted network expansion plans, while the significant devaluation of the Pakistani Rupee, rising interest rates, and additional super tax have affected profitability. PTCL emphasizes the need for policy intervention from the Government to alleviate these challenges and provide relief to the sector.
Highlights of PTCL Group’s Financial Results
Highlights of PTCL Group’s financial results include revenue of Rs 90.9 billion, representing a 26.8% increase from the same period last year. However, due to significant Rupee devaluation and other factors, the Group posted a net loss of Rs 8.5 billion. PTCL’s revenue reached Rs 46.9 billion, marking a 17.3% increase driven by growth in the Carrier & Wholesale and Broadband segments. The company achieved an operating profit of Rs 2.9 billion, with a notable 57% growth over the previous year and a net profit of Rs 6.9 billion.
In terms of business segments, PTCL’s fixed broadband business showed a 17.2% revenue growth, mainly attributed to the success of its FTTH brand, ‘Flash Fiber.’ The IPTV segment also experienced a 5.8% revenue growth. PTCL’s Business Services segment sustained market leadership in IP bandwidth, cloud, data center, and other ICT services. The enterprise business grew by 21.1%, while carrier and wholesale business achieved an overall revenue growth of 34.9%. International voice revenue increased by 18.6%. Despite the challenging economic environment, Business Solutions revenue showed a remarkable year-on-year growth of 27.4%.
Ufone, PTCL’s subsidiary, recorded an impressive 22.4% YoY increase in revenue and reached a subscriber base of 24.5 million. U Bank, the microfinance and branchless banking subsidiary, achieved a remarkable 96.5% growth in revenue and a 27.9% growth in net profit. Both entities have demonstrated resilience in a tough macroeconomic environment.
PTCL Group also highlighted its commitment to corporate social responsibility through various initiatives, including a blood donation campaign and collaboration with the Polio Eradication Initiative to raise awareness about vaccination.
