PTCL Financial Results Show Top Line Growth Amid Enforcement Of Suspended Taxes

Pakistan Telecommunication Company Limited (PTCL) Wednesday announced its financial results for the nine months' period showing top line growth amid enforcement of suspended taxes

ISLAMABAD, (UrduPoint / Pakistan Point News - 16th Oct, 2019 ):Pakistan Telecommunication Company Limited (PTCL) Wednesday announced its financial results for the nine months' period showing top line growth amid enforcement of suspended taxes.

PTCL the country's leading telecom and ICT services provider, has announced its financial results for the nine months' period ended September 30, 2019 at its Board of Directors' meeting held here.

The financial results were announced by PTCL President and Chief Executive Officer Rahid Khan and Chief Financial Officer PTCL Nadeem Khan.

Rashid Khan highlighted that PTCL Group's revenue for the nine months has grown year-on-year (YoY) by 4.5 percent to Rs. 98 billion. Ufone revenue has increased 6 percent YoY, UBank, a microfinance banking subsidiary of PTCL, has shown significant growth of 50 percent in its revenue over last year.

He said, "PTCL has started focusing the core areas and a huge transformation in terms of system and service delivery would be witnessed soon. We have started updating our exchanges in the potential areas with online billing system made more reliable and swift alongwith other services." PTCL, he said did not fear competition in the market with local and foreign competitors rather had all infrastructure in place with strong market position to withstand any competition.

Chief Financial Officer Nadeem Khan while narrating financial results said that PTCL Group's operating profit and net profit for the nine months have decreased by 15 percent and 32 percent respectively as a result of high inflation, significant devaluation of Pakistani Rupees against USD and higher power tariffs.

Moreover, the enforcement of suspended tariffs had also resulted in Ufone revenue decline by 9 percent quarter-on-quarter (QoQ) and 13 percent year on year, he added.

PTCL revenue of Rs. 53.8 billion for the nine months is slightly higher than last year by 0.4 percent. PTCL's flagship Fixed Broadband services posted revenue growth of 5 percent.

"PTCL continues its journey to upgrade its top revenue generating exchanges under Network Transformation Project (NTP) in different parts of Pakistan. For the 95 exchanges fully transformed to date in 12 cities, YoY revenue growth is even higher at 12 percent and there is a 35 percent reduction in customer complaints. Fiber-To-The-Home (FTTH), deployed in major cities with more than 100,000 lines, has received a positive response from the customers," Khan said.

Nadeem Khan said Corporate, Wholesale and International businesses continued their growth momentum from 2018 and had achieved 7 percent overall revenue growth. PTCL has entered into strategic partnership with a local telecom operator for its network expansion, with edotco to enhance Pakistan's connectivity capabilities and Irdeto for Wi-Fi management and parental control functionalities.

"Wireless revenue for the period has declined on YoY basis due to strong competition by the cellular companies providing wireless data services. There is continued decline in voice revenues due to continued conversion of subscribers to OTT, cellular services and illegal/grey traffic termination resulting in declining voice traffic volumes," he told the media.

PTCL has posted a Net Profit after Tax of Rs, 5.5 billion for the nine months which is 14 percent higher than same period of last year. Operating profit for the period remained under pressure compared to last year mainly due to increase in operating cost on account of significant hike in power tariffs and currency devaluation. However, non-operating income has increased due to higher income on investments as a result of increase in interest rates and translation gain on forex based assets.

VIS Credit Rating Company Limited (VIS), a third party validation, has reaffirmed entity rating of PTCL of "AAA" (Triple A) and short term rating of "A-1+" (A-One Plus). The medium to long-term rating of 'AAA' denotes highest credit quality, with negligible risk factors, being only slightly more than for risk-free debt of Government of Pakistan.

The assigned ratings reflect PTCL's leading market position, extensive network infrastructure, strong financial risk profile and adequate business risk profile.

As part of 'Clean & Green Pakistan Movement', PTCL undertook beautification, renovation and re-landscaping of 3 main places in the capital city.

PTCL participated to support the startups incubated at National Incubation Center (MC) Karachi at a special graduation ceremony, at NED University Karachi, for the first cohort of startups.

PTCL held a special ceremony to commemorate Defense Day, observe solidarity with the people of Kashmir and pay tribute to the families of martyrs who lost their lives protecting the motherland.