TAHIR AMIN

ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL) Group’s revenue for the 1st quarter 2018 has grown year on year by 4 percent to Rs30 billion compared to Rs28.827 billion during the same period of 2017.

The financial results for the quarter ended on March 31, 2018 were announced at its Board of Directors meeting, which were later shared with media here on Thursday.

Addressing a press conference, President & CEO of PTCL Group Dr Daniel Ritz said that as a result of positive contribution by all group companies, the growth in revenue was made possible. Operating profit remained Rs2.25 billion in Q1, 2018, compared to Rs1.577 billion during the same period of last year 2017, hence registering 43 percent growth. Operating margin remained 7 percent in Q1, 2018, compared to 5 percent in Q1, 2017. Net profit higher by 28% than the last year normalized for one-off and at constant currency rates.

After arresting the rate of revenue decline in 2017, PTCL Q1, 2018, revenue of Rs17.579 billion has registered growth for the first time since Q2, 2014, and posted an increase of 1% over the same quarter of last year when compared to Rs17.473 billion.

The 1 percent increase in revenue mainly contributed by growth in fixed broadband DSL, Charji and corporate segment. The PTCL operating profit lowered by 3 percent from Rs2.381 billion in Q1, 2017, to Rs2.229 billion in Q1, 2018 YoY due to higher marketing and customer acquisition cost spent in the start of the year.

The PTCL net profit remained lower by 14 percent from Rs2.11 billion in Q1, 2017, to Rs1.818 billion in Q1, 2018, (YoY) driven by lower non-operating income due to VSS, PTET funding and CAPEX payments during the last year. If normalized for one-off, this variance will reduce to 12 percent, said PTCL officials.

The PTCL revenue remained -9 percent in Q1, 2015, -7 percent in Q1, 2016, -3 percent in Q1, 2017, and one percent in Q1, 2018.

Growth in DSL was mainly due to increase in number of subscribers and ARUP by 4 percent and 5 percent respectively. PTCL’s flagship fixed broadband DSL service accelerated its momentum and posted revenue growth of 9 percent over Q1, 2017. Investments made in Charji/LTE during last years have yielded positive results with YoY revenue growth in double digits. Charji subscribers’ growth remained more than double on YoY basis. Retail registered one percent growth and remained Rs11.364 billion in Q1, 2018, compared to Rs11.252 billion in Q1, 2017.

The PTCL claimed significant growth in corporate services by providing enterprise solutions e.g. cloud and connectivity services as it remained Rs1.703 billion in Q1, 2018, compared to Rs1.459 in Q1, 2017, registering 17 percent growth (YoY).

However decline in wholesale was witnessed due to continued conversion of subscribers to OTT and cellular services resulting in declining voice traffic volumes as it remained Rs4.512 billion in Q1, 2018, compared to Rs4.762 billion in Q1, 2017.

Ufone revenue has improved by 4 percent on YoY basis despite tough competition in cellular market.

UBank, a microfinance banking subsidiary of PTCL, has shown very high growth and almost doubled its revenue over Q1, 2017. The PTCL Group’s operating profit improved by 27 percent for the quarter against Q1, 2017.