PTCL Group registers 3.2pc revenue growth in Q1, 2022
Net Profit of Rs 1.9 billion for the quarter was 10 per cent higher as compared to the same period of last year
ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL) Group’s revenue has gone up by 3.2 percent in the first quarter of the current calendar year, strengthening its market standing further as an integrated telecom services provider in the country. The PTCL’s financial results for the first quarter ended on March 31, 2022, were announced at its Board of Directors’ meeting held here on Wednesday, said a news release.
Growth in revenue was mainly driven by strong performance in the consumer segment led by Fixed Broadband, Mobile Data, Business Solutions, and Microfinance services. The PTCL Group’s revenue of Rs 35.1 billion in quarter one was 3.2 percent higher as compared to the same period of last year. Likewise, the PTCL’s revenue of Rs 19.6 billion for the quarter was 3.5 percent higher than the quarter one of 2021, mainly driven by growth in the Broadband and Corporate revenue segments.
Moreover, the PTML’s (Ufone) revenue grew by 1 per cent in the same period. U Bank had also continued its growth momentum and achieved a growth of 13 per cent in its quarterly revenue over the same period of last year. The company had posted an operating profit of Rs 1 billion for the quarter.
Operating profit for the period remained under pressure compared to last year mainly due to increase in operating costs on account of significant hike in power tariffs. Net Profit of Rs 1.9 billion for the quarter was 10 per cent higher as compared to the same period of last year.
Increase in non-operating income, due to translation gain on the Company’s forex denominated assets, dividend income from a subsidiary and gain on disposal of obsolete assets due to upgrade and fiberization of network, had helped turn 39 per cent decrease at operating profit level to a 10 per cent increase at the net profit level. During the past quarters, the PTCL mainly focused on enhancing customer experience by providing the fastest and most reliable internet services under its flagship ‘Flash Fiber’ Fiber-To-The-Home (FTTH) brand.
Through an aggressive and robust commercial strategy, PTCL managed to expand its FTTH services in 27 cities with capacity enhancement for 125,000 new lines during the past year. The rapid rollout of FTTH and strong performance in corporate segment ensured PTCL’s topline growth. During 2022, the company’s Fixed Broadband business grew by 10.4 per cent year-on -year basis, whereas IPTV segment also showed a growth of 9.3 per cent on YoY basis.
Within the Broadband business, Flash Fiber, the company’s premium FTTH service, showed significant growth of 86.6 per cent. The company achieved the highest ever Fixed Broadband sales in Q1, 2022 since 2015. Voice revenue stream had seen a decline due to lower voice traffic and continued conversion of customers to OTT services.
The PTCL’s corporate business was surged by 14 per cent as compared to the last year. Within the wholesale business segment, carrier revenue grew by 6.6 per cent, but the overall wholesale segment revenue had declined as a result of closure of certain international IP leased circuits. International revenue, helped by the favorable impact of currency devaluation, had increased by 13.7 per cent over last year.
As part of an effort to build a greener Pakistan, the PTCL Group, in collaboration with the Capital Development Authority, arranged a tree plantation drive by engaging its employee volunteer force – PTCL Razakaar