Qudsia Bano

Robust growth in both fixed and wireless streams in the third quarter of calendar year 2022 pushed Pakistan Telecommunication Company Limited’s revenue upwards of Rs110 billion at an 8% annual growth rate. This growth was primarily attributable to the consumer segment's good performance, which was led by fixed broadband and mobile data; wholesale and business solutions; and microfinance services.

The devaluation of Pakistani rupee versus the US dollar, higher borrowing rates, and other expenses related to purchase of 4G spectrum and corresponding network rollout continued to put pressure on the PTCL’s profitability. The company suffered a net loss of Rs5.6 billion during the first nine months of 2022, reports WealthPK.

Performance in 2021

PTCL maintained an upward growth trend in 2021, generating Rs77 billion in revenues, which was 7% higher than in CY20, primarily due to growth in the corporate and wholesale business categories and broadband. With the largest fixed broadband sales and net additions since 2015, PTCL was able to expand its broadband business in 2021.

PTCL reported an operating profit of Rs4.2 billion in 2021, an increase of 21% year-on-year, and a net profit of Rs6.9 billion, 14% higher than the previous year. The company managed to achieve growth, despite the difficult economic conditions brought on by inflation, the depreciation of Pakistani rupee versus the US dollar, the increase in electricity prices, and other factors.

As of December 31, 2021, the President of Pakistan owned 62.18% of the company’s shares, followed by the associated companies holding 26%. Banks, development financial institutions, and non-banking financial institutions owned 1.89% of the shares, insurance companies 2.15%, general public (local) 4.60% and ‘others’ 2.63%, respectively.

The company’s EPS decreased from 2018 to 2020. In 2021, the EPS broke the losing streak and increased to Rs1.35 from Rs1.18 in 2020. The net profit margin was 8.94% during 2021 after slightly increasing from 8.4% in 2020.

About the company

PTCL was incorporated in Pakistan on December 31, 1995, and commenced business on January 01, 1996. The company owns and operates telecommunication facilities and provides domestic and international telephone services and other communication facilities throughout Pakistan. The company has also been licensed to provide such services in Azad Jammu and Kashmir and Gilgit-Baltistan.

Credit : Independent News Pakistan-WealthPk