PTCL Reports a 38.8% Profit Growth in the First Half of 2022

PTCL Reports a 38.8% Profit Growth in the First Half of 2022. In an announcement made during its Board of Directors meeting on July 18, 2022, in Islamabad, Pakistan Telecommunication Company Limited (PTCL), the nation’s top supplier of telecom and ICT services, provided financial results for the six-month period ending June 30, 2022.

PTCL-profit-growth

In terms of profitability, PTCL reported a year-over-year rise of 38.90%. Notice to the Pakistan Stock Exchange (PSX) said that the firm declared a profit of Rs. 5.18 billion for the first half of the year that ended on June 30, 2022, as opposed to Rs. 3.73 billion for the same period in the previous year.

The PTCL Group was able to effectively maintain top-line growth throughout the first half of 2022, thus enhancing its position as a leading supplier of comprehensive telecom services in Pakistan.

The PTCL Group’s revenue growth is primarily driven by strong consumer segment performance led by fixed broadband, mobile data, and business solutions, as well as microfinance services. These factors helped the Group grow its revenue by 5.7 percent over the comparable period despite difficulties with the increase in advance income tax (AIT) and the reduction in mobile termination rates (MTR).

Previous Years PTCL Revenue

On the other hand, the PTCL group recorded a loss of Rs. 3.05 billion for the first half of the year as opposed to a profit of Rs. 2.93 billion during the same time in 2016.

In contrast to the PTCL group’s profit of Rs. 2.93 billion during the same time last year, the first six months saw a loss of Rs. 3.05 billion.

According to the sources, PTCL’s revenue for the evaluated period of Rs. 40.0 billion was 4.7% higher than in 2021, mostly due to the expansion of the broadband and business solutions categories. A 1.9-billion-rupee operational profit was declared by the corporation. And PTCL Reports a 38.8% Profit Growth in the First Half of 2022

However, compared to the prior year, the operating profit was under pressure mostly due to an increase in operating costs brought on by a significant increase in fuel and electricity prices. Additionally, PTCL’s Net Profit for the period of Rs. 5.2 billion is 38.8% higher than it was at the same time the previous year.

PTCL Group

In comparison to the same period in 2021, the PTCL Group’s revenue of Rs. 71.7 billion is up 5.7 percent. The depreciation of the Pakistani Rupee versus the US Dollar, rising loan rates, as well as other reasons including the up-front expenditures linked to the acquisition of the 4G spectrum and accompanying network development, all put pressure on the PTCL Group’s profitability. The Group reported a loss of Rs. 3.1 billion on a net basis.

The group’s service costs increased 12.61 percent during the course of the half-year, from Rs. 49.88 billion to Rs. 56.17 billion. The amount spent on administrative and general expenditures rose from Rs. 8.88 billion to Rs. 9.48 billion.

Due to the high-interest rates in the nation and the increase in the KIBOR rate, the company’s financing cost jumped to Rs. 15.48 billion, up 243 percent from Rs. 4.52 billion.

According to a statement made by the business, PTCL maintained its pace for development by reporting a 4.7 percent YoY revenue gain. PTML’s (Ufone) revenue increased by 3.5 percent as compared to the same time in the previous year, while UBank’s revenue increased by 25.0 percent.

U Bank

U Bank, the PTCL subsidiary that provides microloans and branchless banking, maintained its upward trend and increased income by 25.0% year over year by diversifying its portfolio of advances. As the bank proceeded to diversify its financing sources and asset classes while guaranteeing a good bottom-line effect, the bank’s balance sheet footing increased to Rs. 114 billion.

PTML – Ufone

Despite the hurdles posed by the rise in Advance Income Tax (AIT) and the reduction in Mobile Termination Rates, Ufone has succeeded in growing its 4G subscriber base and data services following the acquisition of additional spectrum, resulting in a 3.5 percent YoY gain in topline (MTR).

In accordance with a statement from the firm, Ufone has been extensively modernizing its network to 4G since the spectrum acquisition and has continued to increase its network footprint across the nation. One of the nation’s fastest-growing 4G subscriber bases belongs to the corporation.

The depreciation of the Pakistani rupee, rising interest rates, and increases in gasoline and electricity prices are examples of external variables that have negatively affected the company’s bottom line. Ufone has received first entity ratings from VIS Credit Rating Company of “AA-/A-1” (Double A Minus/A-One), with the issued ratings having a “Stable” outlook. Through an impartial rating process, which also indicates strong credit quality and good fundamental protection features, this recognizes Ufone’s financial soundness and is a testament to stakeholders’ trust in Ufone.

 

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