PTCL Group posts net loss of Rs5.6bn in first 9 months of 2022

ISLAMABAD: PTCL Group announced financial results for first three quarters of 2022 on Thursday as its revenue increased by 8 percent but the group faced a net loss of Rs5.6 billion, weighed down by devaluation of the exchange rate and a hike in input cost.

In its board of directors meeting held in UAE, Pakistan Telecommunication Company Ltd (PTCL) Group posted revenue increase of 8 percent to Rs110.5 billion in first nine months of 2022, as compared to Rs102.3 billion in the same period last year. Fixed broadband, mobile data, and wholesale and business solutions along with microfinance services contributed in the revenue growth, the group said.

However, the group faced a net loss of Rs 5.6 million in first three quarters of 2022, as compared to a profit of Rs3.6 billion in the said period last year. Devaluation of the rupee against the dollar, hikes in power and fuel tariffs, higher interest rates, and other costs associated with acquisition of 4G spectrum and related network rollout brought the group’s profitability under pressure.

Meanwhile, PTCL continued its growth momentum by posting 6.7 percent year-on-year (YoY) revenue growth. PTML’s (Ufone) revenue grew by 5.4 percent as compared to the same period of last year. U Bank has achieved a 29.8 percent growth in its revenue over the same period of last year.

PTCL’s revenue of Rs61.1 billion for the period is 6.7 percent higher than of 2021, mainly driven by growth in broadband and wholesale and business solutions segments.

The company has posted an operating profit of Rs3.2 billion, which remained under pressure compared to last year mainly due to increase in operating costs on account of significant hike in power and fuel tariffs. Its net profit of Rs8.2 billion for the period is 45.2 percent 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 on upgrade and fiberisation of network, has helped turn the 12.4 percent decrease at operating profit level to a 45.2 percent increase at the net profit level.

During the first 3 quarters, the company’s fixed broadband business grew by 11.7 percent YoY. Within the broadband business, revenues from flash fiber, the company's premium FTTH service, showed a significant growth of 98.7 percent. IPTV (internet protocol television) also showed 8.6 percent growth YoY. Voice revenue stream has seen a decline on lower voice traffic and continued conversion of customers to OTT (over-the-top) services.

According to PTCL, it has expanded its FTTH (fiber to the home) services in 35 cities. While continuing momentum with overall YoY revenue growth of 8.8 percent, the business solutions segment sustained its market leadership in IP bandwidth, cloud, data center, and other information and communication technology services, the company said.

PTCL’s corporate business grew by 13.0 percent as compared to last year. Within the wholesale business segment, the company said its carrier revenue had grown by 16.2 percent but the overall wholesale segment revenue declined as a result of closure of certain international IP leased circuits.

International revenue, helped by the favorable impact of currency devaluation, increased by 13.9 percent over last year, PTCL said.