Karachi: Pakistan Telecommunication Company Ltd (PTC) has reported significant revenue growth in its first quarter of 2026, primarily driven by its recent acquisition of Telenor Pakistan. The company's revenue reached Rs97.8 billion, marking a 58% increase year-over-year, with Telenor contributing 38% to this rise.

According to JS Global, during a corporate briefing, PTC disclosed plans to receive court approval for the amalgamation with Telenor by June, with commercial operations expected to commence in the third quarter of 2026. The merged entity is projected to serve approximately 73 million subscribers and operate around 25,000 towers. Financial synergies from the integration are anticipated to begin in 2027. The company estimates monthly operational costs per tower to be between Rs250,000 and Rs300,000, covering utilities, fuel, rent, and security.

PTC also highlighted its acquisition of a 5G license in 2026, securing a total of 180 MHz post-amalgamation. This acquisition boosts its total spectrum holdings to 292 MHz, making it the largest spectrum holder in the market. On tax matters, PTC plans to leverage improved profitability to utilize accumulated tax receivables by offsetting future liabilities, thanks to the group tax regime's consolidated filing benefits.

The company noted an upward trend in industry Average Revenue Per User (ARPU), which had previously declined due to currency devaluation. The Telenor-Ufone portfolio is currently achieving ARPU between Rs300 and Rs310. Additionally, Ubank, a subsidiary of PTC, reported a 10% year-over-year increase in advances and a 33% rise in deposits, reflecting strong balance sheet growth.

In the fintech sector, PTC recognizes significant potential in digital wallets and microfinance, given that approximately 70% of Pakistan's adult population remains unbanked, compared to around 30% in peer markets.