Karachi, April 21, 2022 (PPI-OT): PTC: Corporate briefing session key takeaways

Pakistan Telecommunication Company Limited (PTCL) announced its first quarter financial result on 13th Apr, 2022 wherein the company posted a loss of Rs1.56bn on a consolidated basis. The company held its corporate briefing today to discuss 1QCY22 results and outlook.

Sales for the group grew by 3.2% YoY. Whereas, the company’s EBITDA on a consolidated basis clocked in at Rs10bn (-8.5% YoY). Management apprised that the EBITDA remained under pressure due to increase in fuel and power rates and general inflation.

Dividend from Ubank and exchange gains on dollar denominated receivables led to higher Non-operating income.

Company’s consolidated bottom-line was affected by several factors including energy price hikes, advanced income tax imposed by the government, rupee devaluation and increase in borrowing costs.

Company shared that its flagship business, PTCL, has the highest market share of 74%. Its Fiber To The Home (FTTH) service subscriber base doubled during the period. However, the company’s Voice, Wireless and International segments showed a decline in revenue in 1QCY22.

Ufone’s revenue remained almost flat in 1QCY22 on a YoY basis. The WHT tax increased from 10% to 15%, while the Mobile disconnect charges were slashed from 70 paisa to 50 paisa. 4G usage volume increased by 129% YoY during the period. The management expects the subsidiary to achieve breakeven in the next 5 years.

The management also shared that Ufone has started its data services in AJK.

The management highlighted that the investments made by the group in Ufone will bring in higher borrowing costs and depreciation in the medium term, it expects positive contribution on back of these investments in the longer term.

Ubank achieved a revenue growth of 13% YoY supported by increase in deposit base of the bank and loan portfolio. At present, 54% of the GLP loan is secured by Gold. The bank disbursed loans of Rs9.9bn during the period.