Karachi, October 25, 2022 (PPI-OT): PTC: Corporate briefing session key takeaways

Pakistan Telecommunication Company Limited (PTC) announced its third quarter financial result on 13th October 2022 wherein the company posted a loss of Rs2.6bn (LPS: Rs0.7) on a consolidated basis. The company held its corporate briefing today to discuss 3QCY22 results and outlook.

Sales for the group grew by 12% YoY during 3QCY22. Whereas, the company’s EBITDA was almost flat on a consolidated basis clocking in at Rs10.2bn, +0.6% YoY. Management apprised that the EBITDA remained under pressure due to increase in fuel and power tariffs, staff costs and general inflation.

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.

Management shared that its flagship business, PTCL, maintained its leadership position in the Fixed broadband business with a market share of 74%. Its Fiber To The Home (FTTH) service subscriber base doubled on a YoY basis and the segment’s market share grew from 15% to 23% during the quarter. However, the company’s Voice and Wireless segments showed a decline in revenue in 3QCY22.

Ufone’s revenue increased by 9% YoY in 3QCY22 despite adverse impact of AIT (increased from 8% to 15%) and MTR. Ufone has shown higher growth vs industry in data subscribers, backed by the spectrum acquisition. Management highlighted that it expects positive contribution from the recent investments made to expand Ufone’s footprint. Network roll-out and modernization has been progressing nicely with 945 additional sites deployed until Q3 2022.

Ubank, its microfinance bank, achieved a revenue growth of 30% YoY supported by increase in deposit base of the microfinance bank and loan portfolio. At present, 56% of the GLP loan is secured by gold. The microfinance bank’s loan portfolio expanded by Rs11bn YoY during the quarter.