Pakistan Telecommunications Company Limited (PTCL), the leading telecommunications and ICT services provider in the country, announced its financial results for the year ended 31 December 2018 at its meeting of the Board of Directors held in Islamabad on 12 February . from 2019.
PTCL Group’s revenue for the year 2018 increased by 8% year-on-year to Rs. 126.2 billion due to the positive contribution of all the companies in the group. The growth of the PTCL group’s fourth-quarter turnover grew to 13%.
PTCL Reports for the First time Since 2014 Revenue Growth Throughout the Year
Ufone’s turnover increased by 13% year-on-year. PTB’s microfinance company UBank showed a significant 64% growth in revenue compared to last year. The operating profit and net profit of the PTCL group for the year improved by 198% and 32% respectively. Just like the other, the net profit of the PTCL group is 22% higher than last year.
PTCL revenue from Rs. 70.1 billion for the year is 0.7% up on last year, with the fourth quarter showing accelerated growth of 3.4% YoY. In 2018, PTCL revenue for the first time since 2014 showed a year-on-year growth:
In 2018, three quarters of PTCL’s revenue base grew compared to last year. PTCL’s emblematic fixed broadband services recorded a 6.5% increase in revenue over 2017.
For the 51 exchanges so far completely transformed under the network transformation program, annual revenue growth was even higher than 12.4%. Investment in network exchange conversion improved customer experience by reducing network errors by 36% and repeating errors by 50%, in addition to providing bandwidths greater than 100 Mbps, along with Triple Play services. To further enrich the product and service portfolio, PTCL collaborated with global OTT players such as Netflix, STARZ Play, icflix, and so on. It was also recognized by Brand Finance as the “Fastest Growing Fire in Pakistan”.
Corporate businesses continue to perform well and have seen a significant growth of 13% compared to last year when new clients in Managed Services and Infrastructure Services were reported in the Cloud, with a growth of 154% and 188% respectively in these two segments.
Conversion customers to Charkhi EVO / LTE have yielded positive results with revenue growth in double digits, but it also led to increased cost subscriber acquisition compared to last year. There is a steady decline in revenue from local and international voice due to an increase in the termination of gray / illegal trade, ongoing success subscribers to OTT and cellular services, leading to a decline in voice volumes.
PTCL operating profit for the year is down 9% compared to 2017 mainly due to the increase in operating costs due to currency devaluation and higher subscriber acquisition costs. In addition, non-operating income also declined due to the reduction in funds compared to last year. The net benefit for the year is Rs. 7.4 billion, down 11% compared to the previous year (and 8% lower if adjusted once), driven by lower operating profit and lower non-operating profit.
In 2018, the financial strength of PTCL recognized by an exercise independent rating due to which JCR-VIS PTCL awarded a rating of AAA long-term would be the confidence of all stakeholders in improving long-term sustainability of the company.
This year, again, PTCL has the top 100 young engineers and business graduates in the 2018 Summit Program of the best institutions and universities across Pakistan, which will help build future leadership. With its sustained high growth, UBank has created more than 650 new jobs during 2018, raising the employee base to 1,321-1,980, where 9% of the total workforce is women.
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