Karachi, July 21, 2022 (PPI-OT): PTC: Corporate briefing session key takeaways

Pakistan Telecommunication Company Limited (PTC) announced its second quarter financial result on 18th July 2022 wherein the company posted a loss of Rs1.5bn (LPS: Rs0.4) on a consolidated basis. The company held its corporate briefing today to discuss 2QCY22 results and outlook.

Sales for the group grew by 8.2% YoY during 2QCY22. Whereas, the company’s EBITDA remained flat on a consolidated basis clocking in at Rs10.2bn, flat YoY. Management apprised that the EBITDA remained under pressure due to increase in fuel and power tariffs, staff costs and general inflation.

Exchange gains on dollar denominated receivables and sale of some old network equipment led to higher Non-operating income.

Company’s consolidated bottom-line was affected by several factors including energy price hikes, additional tax imposed by the government, rupee devaluation and increase in borrowing costs.

Company shared that its flagship business, PTCL, maintained its market share as its Fiber To The Home (FTTH) service subscriber base almost doubled on a YoY basis. However, the company’s Voice, Wireless and International segments showed a decline in revenue in 2QCY22.

Ufone’s revenue increased by 3.5% YoY in 2QCY22 despite adverse impact of AIIT and MTR. Ufone has shown higher growth vs industry in data subscribers, backed by the spectrum acquisition. The management highlighted that it expects positive contribution from the recent investments made to expand Ufone’s footprint.

Ubank, its microfinance bank, achieved a revenue growth of 38% YoY supported by increase in deposit base of the microfinance bank and loan portfolio. At present, 55% of the GLP loan is secured by gold. The microfinance bank disbursed loans of Rs22bn during the quarter.