Network Transformation Investment Betters PTCL's Financial Growth: CEO

Pakistan Telecommunication Company Limited (PTCL) is implementing a Rs. 8 billion programme to transform its around 100 exchanges across the country in order to ensure quality services and improve financial growth.

ISLAMABAD, (UrduPoint / Pakistan Point News - 11th Oct, 2018 ) :Pakistan Telecommunication Company Limited (PTCL) is implementing a Rs. 8 billion programme to transform its around 100 exchanges across the country in order to ensure quality services and improve financial growth.

Of the total, many exchanges have been transformed while the work is in progress to transform remaining ones. The programme, launched in 2017, would also continue during next year, Chief Financial Officer of ptcl (CFO Group), Nadeem Khan said.

At a press conference here on Thursday, President/Chief Executive Officer of PTCL, Dr. Daniel Ritz and Nadeem Khan announced Company's financial results for nine months period, ended September 30, 2018.

Dr. Daniel said PTCL Group's revenue for nine months period of 2018 has grown Year on Year (YoY) by 6 per cent to Rs. 93.21 billion as a result of positive contribution by all group companies.

Quarter of Quarter (QoQ) PTCL Group's revenue has also grown by 11 per cent during third quarter of 2018.

Nadeem Khan said the Company was investing more to improve its services and added improved services have resulted in revenues growth of PTCL.

Moreover, he said Ufone revenue has increased by 10 per cent YoY while UBank, a micro-finance banking subsidiary of PTCL, has shown significant growth of 65 per cent in its revenue over same period of 2017.

PTCL Group's operating profit for period improved by 65 per cent, however its net profit declined by 26 per cent mainly due to adverse impact of Currency devaluation of Rs. 1.4 billion during current year and positive one-offs of Rs. 2.3 billion in last year.

Like-for-like net profit of PTCL Group would have been higher by 27 per cent as compared to last year.

PTCL revenue for nine months has been stable overall at Rs. 52.6 billion YoY.

PTCL's flagship Fixed Broadband DSL service posted revenue growth of 7 per cent over nine months of 2017. This includes 31 exchanges fully transformed to date where DSL growth YOY was even higher at 15 per cent.

Corporate business continues to perform strongly and has shown significant growth of 14 per cent over same period last year by signing new customers in Managed Services, Cloud Infrastructure Services, IT and Security Solutions.

Nadeem Khan said conversion of EVO customers to Charji/LTE have yielded positive results with YoY revenue growth in double digits, however, also resulted in higher subscriber acquisition cost as compared to same period last year.

There is continued decline in domestic and international voice revenues due to increase in illegal/grey traffic termination, continued conversion of subscribers to Over The Top (OTT) and cellular services resulting in declining voice traffic volumes.

Company's operating profit for nine months period is lower by 17 per cent, as compared to same period of 2017 mainly due to higher subscriber acquisition cost and Cable & Satellite/Network maintenance on account of currency devaluation.

Further, non-operating income has also declined due to reduced funds as compared to last year.

Net Profit for period is Rs. 4.8 billion which is 26 per cent lower as compared to same period last year as reported (and 13 per cent lower if adjusted for one-offs), driven by lower operating profit and lower non-operating income.

Nadeem Khan said financial strength of PTCL has recently been acknowledged through an independent rating exercise as a result of which JCR-VIS has assigned PTCL a long-term rating of AAA which will enhance stakeholders' confidence.

During 3rd quarter PTCL entered into a partnership with WWF Pakistan and committed to support plantation of 200,000 mangrove seeds in Balochistan. PTCL has also inducted top 100 young engineers and business graduates under Summit Programme 2018 from top institutions & universities across Pakistan which would help to develop future leadership.

Being a national carrier, PTCL also launched a specialBrand Campaign `Hum hain PTCL, hum hain Pakistan' on IndependenceDay, which invoked patriotic emotions.