PTCL Group’s strong operational performance during 2023

PTCL Group, Pakistan’s leading telecom and ICT services provider has achieved a double-digit revenue growth of 25.8% during the financial year 2023. PTCL Group has maintained its strong performance, strengthening its status as Pakistan’s top integrated telecom service provider. Pakistan Telecommunication Company Limited (PTCL), posted 15.4% growth in its revenues, owing to its strong performance in retail and business segments, whereas Ufone achieved 25.6% growth in its revenues. The Group’s subsidiary, U Microfinance Bank, kept a strong momentum and posted 76.5% revenue growth during 2023.   

The company announced its annual financial results for the year 2023 at its Board of Directors’ meeting held in Islamabad on February 13, 2024.

Major Highlights of Financial Performance

PTCL Group 

PTCL Group’s revenue has increased by 25.8% YoY to Rs 190.6 billion, mainly driven by strong performance in the consumer segment led by fixed broadband, mobile data, and wholesale & business solutions, along with microfinance services. 

The Group’s profitability was, among other factors, particularly affected by significant Rupee devaluation and high interest rates during the year. The Group has posted a net loss of Rs 14.1 billion. The biggest highlight for PTCL during 2023 has been the signing of a Share Purchase Agreement with Telenor Pakistan B.V. (Telenor) to acquire a 100% stake in Telenor Pakistan (Pvt) Ltd (Telenor Pakistan) based on an Enterprise Value of PKR 108 billion on a cash-free, debt-free basis.

PTCL 

PTCL continued its strong performance throughout 2023. PTCL posted revenue of Rs 96.3 billion for the year 2023 which is 15.4% higher than last year, mainly driven by growth in broadband and wholesale & business solutions segments.

Flash Fiber, PTCL’s premium Fiber-To-The-Home (FTTH) service, showed tremendous growth with highest Net adds share within FTTH market in 2023. This phenomenal growth has been possible through the aggressive expansion of PTCL Flash Fiber and dedicated customer experience throughout the country.

The company reported a net profit of Rs 9.4 billion, the highest since 2013, which is 3.7% higher than last year. Prompt deployment of FTTH and strong performance in the Corporate and Wholesale segments are the cornerstones in PTCL’s topline growth. 

PTCL Consumer Business: 

PTCL’s fixed broadband business has shown 17.4% YoY growth propelled by the aggressive FTTH expansion. Flash Fiber showed unprecedented growth of 106.8%, taking the lion’s share of the market’s net adds, whereas the PTCL IPTV segment also grew by 2.5% YoY. Voice and Charji revenue streams continued the declining trajectory impacted by OTT services and competition from cellular operators.

Business Services: 

The business services segment continued its momentum sustaining market leadership in IP Bandwidth, Cloud, Data Center, and other ICT services segments. PTCL’s Enterprise business grew by 25.7% as compared to last year, while the Carrier and Wholesale business continued its growth momentum and achieved 21.9% overall revenue growth. International voice revenue has increased by 17.9% as compared to last year. Overall Business Solutions revenue has grown by 21.9% on a year-on-year basis.

Being the national telecom carrier and connectivity backbone in Pakistan, PTCL Group strives to provide innovative solutions to accelerate growth for a ‘Digital Pakistan’ through robust telecommunication infrastructure and a diverse portfolio of services with enhanced customer experience. 

As Pakistan’s backbone of connectivity, PTCL Group is at the forefront of providing innovative solutions that strengthen the idea of a ‘Digital Pakistan’. This is accomplished by building a strong telecommunication infrastructure and offering a diverse range of services, all focused on elevating customer satisfaction and accelerating digitalization in the country. 

PTCL Group signed Pakistani cricket icons, Babar Azam, Haris Rauf, and Naseem Shah as brand ambassadors for the Group to celebrate the nation’s roaring passion for cricket and to rally support for the Pakistan Cricket Team during its ICC Cricket World Cup 2023 campaign. 

PTCL Group has been awarded the ‘Best Place to Work in Technology & Telecom Sector’ by PSHRM-Engage Consulting, along with being recognized as the ‘Most Facilitating Employer’ at the NUST Placement Recognition Awards 2023. 

PTML – Ufone:

In 2023, Ufone 4G emerged as the standout performer in the telecom industry, reporting exceptional revenue growth of 25.6%, surpassing all other operators. Ufone 4G posted the highest 4G net adds in the industry. 

This growth has been possible due to better customer experience and digital engagement through multiple data-centric products and strategic partnerships with leading digital platforms. Ufone 4G continues its network modernization activities to provide unmatched customer experience across Pakistan.

The introduction of ONIC, PTCL Group’s ambitious project, marks a pivotal step towards digital transformation. ONIC aims to be an all-encompassing digital platform, offering a suite of services ranging from e-commerce and financial services to entertainment and connectivity solutions. 

PTCL & Ufone 4G, has entered into a strategic alliance with the esteemed Pakistani cricket franchise, Peshawar Zalmi, for the upcoming 9th edition of the Pakistan Super League (PSL).  

U Bank

Ubank, a microfinance and branchless banking subsidiary of PTCL, continued its growth trajectory and has achieved a remarkable 76.5% growth in revenue over the corresponding period of last year while maintaining a strong balance sheet position as the bank continued to diversify its asset classes and funding streams while ensuring positive bottom-line impact. The bank stands resolute in its commitment towards financial and social inclusion, utilizing its extensive outreach to provide exceptional services to a diverse clientele across the length and breadth of the country through its rural retail banking, corporate finance & investment banking, Islamic banking, urban retail banking, corporate banking, and digital banking canvases.

Corporate Social Responsibility (CSR)

Throughout 2023, PTCL Group engaged in various Corporate Social Responsibility (CSR) activities, showcasing a commitment to positively impacting society. One notable initiative involved supporting Pehli Kiran Schools in backward areas of Islamabad by providing Evo Charji Devices, ensuring seamless internet connectivity for out-of-school children. 

Additionally, PTCL Group actively participated in national initiatives such as the Polio Eradication Campaign with UNICEF and organized a massive blood donation drive at its headquarters in alignment with ‘World Blood Donor Day.’ The organization collaborated with GSMA for a knowledge-sharing workshop addressing the gender gap in mobile usage in Pakistan. To promote environmental protection, a tree plantation campaign in collaboration with the Parks & Horticulture Authority was also carried out.