ISLAMABAD: On Wednesday, Pakistan Telecommunication Company Limited (PTCL), the leading telecom and ICT services provider in Pakistan, announced its financial results for the first half of 2023, showcasing a remarkable 26.8% revenue growth compared to the same period last year. Despite facing adverse macroeconomic challenges and rising inflation, PTCL Group has managed to sustain its momentum and solidify its position in the market.
The significant increase in revenue can be attributed to the exceptional performance across multiple segments, including fixed broadband, mobile data, business solutions, and banking services. PTCL Group’s subsidiary, Ufone, recorded an impressive 22.4% year-on-year revenue growth, reaching a subscriber base of 24.5 million. Similarly, U Bank, the microfinance and branchless banking subsidiary of PTCL, achieved a remarkable 96.5% growth in revenue and a 27.9% growth in net profit.
Despite these positive results, PTCL Group has faced several challenges due to the prevailing macroeconomic conditions. The escalating energy and fuel tariffs posed obstacles for telecom operators, hindering their ability to provide affordable services to consumers. Delays in opening letters of credit (LC) affected the network expansion plans of the operators. Additionally, the devaluation of the Pakistani Rupee, rising interest rates, and additional super tax imposed on top of regular corporate tax significantly impacted profitability.
To mitigate these challenges, PTCL Group called for policy interventions by the government to provide relief to the sector. The company emphasized the need for support in addressing energy and fuel tariff issues, facilitating network expansion, and mitigating the effects of currency devaluation and taxation.
Within the PTCL Group, PTCL itself achieved a revenue of Rs 46.9 billion, representing a 17.3% increase compared to 2022. The company posted an operating profit of Rs 2.9 bn, showcasing a 57% growth over the previous year. The net profit stood at Rs 6.9 bn, indicating a 34.5% increase from the same period last year. The growth in profitability can be attributed to non-operating income from forex gains and the disposal of obsolete assets due to network upgrades and fiberization.
PTCL’s consumer business demonstrated steady performance, with a 17.2% revenue growth in the fixed broadband business. The company focused on expanding its flagship FTTH brand, ‘Flash Fiber,’ achieving significant net subscriber additions and a 106.5% increase in FTTH revenue. However, voice and wireless revenue streams faced challenges from OTT services and tough competition from cellular operators.
In the business services segment, PTCL sustained its market leadership in IP bandwidth, cloud, data center, and other ICT services. The enterprise business grew by 21.1% compared to last year, and carrier and wholesale business achieved a 34.9% overall revenue growth. Despite the challenging economic environment, overall Business Solutions revenue demonstrated a remarkable 27.4% year-on-year growth.
As Pakistan’s national telecom carrier, PTCL Group remains committed to delivering innovative solutions that drive the growth of a ‘Digital Pakistan.’ The company collaborated with Vodafone to introduce industry-leading IoT products, services, and solutions to the Pakistani market, aimed at accelerating digital enablement and the adoption of connected services.
In addition to its financial achievements, PTCL Group actively engaged in corporate social responsibility initiatives. The company organized a blood donation campaign in Islamabad and partnered with the Polio Eradication Initiative (PEI) to raise awareness about polio eradication through vaccination.
Despite the challenges posed by the economic landscape, PTCL Group’s impressive revenue growth reflects its resilience and commitment to delivering quality services in Pakistan. With its continued focus on innovation and customer experience, PTCL Group is paving the way for a digitally empowered future.
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