PTCL Group Achieves Double-Digit Revenue Growth in 2022
Pakistan’s leading telecom and ICT services provider, PTCL Group, announced its financial results for the year 2022, posting a double-digit revenue growth of 10.2%. The group’s subsidiary, U Microfinance Bank, achieved a strong momentum and recorded a revenue growth of 35.4%.
PTCL Group’s Financial Performance
The group’s revenue growth was mainly driven by strong performance in the consumer segment, which was led by fixed broadband, mobile data, wholesale and business solutions, and microfinance services. However, the group’s profitability remained under pressure due to the significant hike in power and fuel tariffs, devaluation of the Pak Rupee against the US Dollar, higher interest rates, and other costs associated with the acquisition of 4G spectrum and related network rollout. The group posted a net loss of Rs 7.8 billion.
PTCL Financial Performance
PTCL continued its strong performance in 2022, posting a revenue of Rs 83.4 billion, which is the highest ever in its history, and 8.6% higher than in 2021. This growth was mainly driven by the broadband and wholesale and business solutions segments. PTCL’s premium Fiber-To-The-Home (FTTH) service, Flash Fiber, showed tremendous growth with the highest net adds within the FTTH market in 2022. PTCL also posted an operating profit of Rs 4.9 billion, which is 17% higher than in 2021, and a net profit of Rs 9 billion, the highest since 2013, and 31.7% higher than the previous year.
PTCL Consumer Business
PTCL’s fixed broadband business grew by 12.2% YoY, propelled by aggressive FTTH expansion. Flash Fiber showed unprecedented growth of 102.7%, taking the lion’s share of the market’s net adds, whereas the PTCL IPTV segment grew by 8.1% YoY. However, voice and wireless broadband segments witnessed a decline due to the conversion of customers to over-the-top (OTT) services and competition from cellular operators.
Business Services
The business services segment sustained its momentum and sustained market leadership in IP Bandwidth, Cloud, Data Center, and other ICT services segments. PTCL’s Enterprise business grew by 18.8% as compared to last year, while the Carrier and Wholesale business achieved 11% overall revenue growth. International voice revenue increased by 8.5% YoY, and overall business solutions revenue grew by 12.5% YoY.
Ufone Financial Performance
Ufone, PTCL’s subsidiary, recorded positive net adds with 3.9% YoY growth in subscriber base and gained market share within the industry. Despite the challenges of an increase in Advance Income Tax (AIT) and a reduction in Mobile Termination Rates (MTR) and recent floods in the country, Ufone achieved a 7.1% YoY revenue growth in 2022. The company’s growth was achieved through investment in the network and an aggressive product offering focusing on data and regional play. The company launched an array of new offerings targeting data-savvy younger segments, resulting in more than 40% growth in data revenue.
U Bank Financial Performance
U Bank, PTCL’s microfinance and branch less banking subsidiary, achieved a revenue growth of 35.4%.
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