PTCL group revenue growth 11 per cent in Q1 2019; emphasis on DSL growth

ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL)’s revenue group growth has grown year-on-year (YoY) by 11 per cent to Rs33.5 billion as a result of accelerated growth in the Ufone and Ubank revenues as per financial results announced for the first quarter (Q1, 2019).

The main emphasis laid by PTCL during this endeavour was on digital subscriber line (DSL) expansion which had increased by 6 percent. Chief Executive Officer (CEO) and President PTCL Rashid Khan stated these remarks while announcing the financial results for the quarter ended March 31, 2019 at its Board of Directors' meeting held here on Wednesday.

He said owing to the prevailing digitalization trend prevailing in the market there had been increased growth in data with a decline in wire lines of PTCL.

Khan said, “We are taking digital initiatives including the task to upgrade top 100 exchanges under Network Transformation Project (NTP) in different parts of the country. The results are significant for the 76 exchanges fully transformed to date in 12 cities as YoY revenue growth is even higher at 12 per cent and there is 40 per cent reduction in customer complaints.”

CEO, PTCL vowed that PTCL would capitalize the opportunities arising in the mega development projects like 5 million houses under Naya Pakistan scheme announced by Prime Minister Imran Khan.

Chief Financial Officer, PTCL Nadeem Khan delivered a comprehensive briefing to media persons on the financial results for Q1, 2019.

He said that the fiscal results showed a comparison of increase in revenue between 2018 and 2019. “Ufone revenue has increased double digits YoY, UBank, a microfinance banking subsidiary of PTCL, has shown significant growth of 53 per cent in its quarterly revenue over last year,” he added.

PTCL Group's operating profit and net profit for the quarter had improved by 34 per cent and 95 per cent respectively as a result of the revenue growth. PTCL revenue of Rs. 17.9 billion for the quarter was slightly lower than last year. “The main reason for this slight decrease is the consequent decline in wireless and Voice revenue,” he added.

Khan briefed that PTCL's flagship Fixed Broadband services posted revenue growth of 5.8 per cent over last year.

“Corporate business continued its growth momentum from a strong 2018 and has achieved a double digit growth YoY. Growth drivers for corporate business are Cloud Infrastructure, IT, Security and Managed Services projects,” Nadeem Khan said.

“Wireless revenue for the quarter has declined on YoY basis due to strong competition by the cellular companies providing wireless data services. There is continued decline in domestic and international voice revenues due to illegal or grey traffic termination, continued conversion of subscribers to over the top (OTT) and cellular services resulting in declining voice traffic volumes,” the Chief Financial Officer maintained.

“PTCL posted a Net Profit After Tax which is 10 per cent higher than last year. Operating profit for the quarter remained under pressure compared to last year mainly due to increase in operating cost on account of significant hike in power tariffs.

However, non-operating income has increased due to higher income on investments as a result of significant increase in benchmark interest rates by the State Bank of Pakistan,” he elaborated.

He also mentioned that as a national company, PTCL had undertaken various initiatives for climate change and environmental preservation such as collaboration with Ministry of Climate Change to support the Clean Green Pakistan Movement by planting 200,000 trees on company sites.

Moreover, he said PTCL being an environment friendly company had also launched campaign for its customers to opt for eBilling, instead of receiving monthly paper company, bills.

PTCL headquarters, a green office certified by WWF, observed Earth Hour to show its support towards the global cause. Being a national company, PTCL shared patriotism of every Pakistani in their love of motherland by supporting ‘Sherdil’, a Pakistani movie highlighting the sacrifices, courage and spirit of Pakistan Air force (PAF) pilots, which brought the entire nation together in solidarity and love for Pakistan, he added.