Pakistan Telecommunication Company Limited (PTCL), the country’s largest telecom and ICT service provider, has released its financial results for the year ended December 31, 2021.
PTCL Group continued its growth trajectory by delivering 7 percent year-on-year sales growth, the highest since 2013.
PTCL group
The company has reported a consolidated profit of Rs. 2.57 billion, down 21.41 percent compared to a profit of Rs. 3.27 billion in 2020. PTCL Group posted sales of Rs. 138 billion in the year 2021, which is 7 percent higher as compared to Rs. 129.2 billion in 2020.
According to the company’s statement, PTML (Ufone) also posted revenue growth of 4.3 percent despite stiff competition in the market. U Bank continued its growth rate and realized a turnover growth of 8.4 percent.
PTCL
On an unconsolidated basis, PTCL recorded a profit of Rs. 6.87 billion in 2021, an increase of nearly 14 percent compared to Rs. 6.03 billion in 2020.
PTCL continued its strong performance in 2021. The turnover of Rs. 76.85 billion for the year 2021 is 7 percent higher than Rs. 71.80 2020, mainly driven by the Broadband and Corporate & Wholesale business segments. It registered its highest fixed broadband sales and net additions in 2021 since 2015, enabling PTCL to grow in the enterprise broadband segment.
PTCL is the fastest growing FTTH operator with the highest net gains within the FTTH market in 2021. The company has posted an operating profit of Rs. 4.2 billion, which is 21 percent higher than in 2020. In addition, it recorded a net profit of Rs. 6.9 billion, which is 14 percent more than last year.
The company is continuously upgrading its existing infrastructure and network, in addition to expanding Fiber-to-the-Home (FTTH) across the country to provide seamless connectivity for a better customer experience. Rapid deployment of FTTH and strong performance in the Corporate and Wholesale segments are the cornerstone of PTCL’s top line growth, which, along with a focus on cost optimization programs, has significantly increased the company’s profitability.
PTCL Consumer Affairs
In 2021, the company’s fixed broadband business grew 11.7 percent year-over-year, while the PTCL IPTV segment also grew 13 percent year-over-year. Within the broadband business, PTCL Flash Fiber, the company’s pioneering FTTH service, grew at 61.5 percent, while the PTCL CharJi/Wireless Broadband segment grew 16.5 percent.
Voice revenues have declined due to reduced voice traffic and the continued conversion of customers to OTT services.
Business Services
The business services segment continued its momentum, supporting market leadership in the IP bandwidth, cloud, data center and other ICT services segments. PTCL’s Enterprise business grew 10 percent year-on-year, while the carrier and wholesale business continued to grow at a pace of 9 percent overall revenue growth. Likewise, international business growth was recorded at 4 percent.
PTML – Ufone
Ufone’s 2021 fiscal year ended at a peak despite a challenging business environment. Revenue grew 4.3 percent compared to 2020, primarily driven by growth in data services.
The company acquired an additional 9 MHz 4G spectrum in the 1800 MHz band in the NGMS spectrum auction in September 2021, fulfilling its promise to provide an enhanced customer experience through quality services across Pakistan.
After the spectrum auction, significant network modernization activities were carried out in the fourth quarter of 2021, enabling Ufone to significantly improve its share of the industry’s 4G network additions.
PTCL Group plays a key role in supporting the Universal Service Fund (USF) efforts to develop telecommunications services in unserved and underserved areas of the country. This year, PTCL received seven USF fiber projects for remote areas in Punjab, KPK and Sindh provinces. In the context of these projects, PTCL will deploy a total of 4,690 KM of optical fiber. Ufone was awarded five USF projects in 2021 under the umbrella of Broadband for Sustainable Development (BSD) for the unserved and underserved areas of Baluchistan, requiring 205 BTS sites to be deployed and upgraded.
UBank
UBank, the microfinance and branchless banking subsidiary of PTCL, continued its growth trajectory, achieving 8.4 percent revenue growth last year by expanding its advanced portfolio. The bank’s balance sheet crossed the mark of Rs 100 billion as the bank diversified its funding flows and asset classes while ensuring a positive bottom-line impact.
Key strategic initiatives of the bank include the venture of low-cost housing loans, international remittances and the launch of Islamic Banking. The bank plans to invest in state-of-the-art technology to become a leading player in digital banking. With the core mission of microfinance at its core, the bank’s business model is evolving to conquer new segments and classes of customers to incorporate more of Pakistan into the banking network and further its ambition of financial and social integration.
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