Pakistan Telecommunication Company Limited (PTC) - July 2023

Pakistan Telecommunication Company Limited (PTC) – July 2023

Research Team

Table of Contents

The PTC Group reported a net loss of PKR2.804 billion in 2QCY23, marking a decline of 87% YoY as compared to a loss of PKR1.498 billion in the corresponding period last year.

However, the revenue witnessed a remarkable increase of 30.3% YoY to PKR47.765 billion during 2QCY23, compared to PKR36.670 billion in SPLY. The growth was attributed to robust performances in fixed broadband, mobile data, business solutions, and banking services.

In the same period, the gross profit also witnessed a notable surge of 30% YoY to PKR10.140 billion, as opposed to PKR7.796 billion in SPLY.

On a standalone basis, PTC reported a substantial revenue growth of 18% YoY, reaching PKR23.973 billion in 2QCY23, compared to PKR20.387 billion in SPLY. This growth is mainly attributed to the strong performance of the wireless data segment, which witnessed a 17% YoY increase, along with robust growth in the corporate & wholesale segment, recording a 33% YoY increase, and the international segment with a 17% YoY increase, respectively.

However, the wireless data and voice segments faced challenges, experienced a decline of 21% YoY and 9% YoY respectively, during the noted period. Despite these declines, PTCL managed to achieve significant overall revenue growth.

The significant revenue growth in PTC was supported by a 100% YoY increase in FTTH Base (291K subscribers) and the highest-ever FTTH net additions (46K with 56% market share). Moreover, the Company also witnessed a growth in market share in FTTH (31% up YoY), FBB ARPU (14% up YoY with 70% market share), and business solution revenue (27% up YoY).

Ufone’s revenue grew by 25% (PKR 3.604 billion) with total subscribers and 4G subscribers increasing by 0.9% (PKR 24.5 million) and 38%, respectively. The net additions reached 353K in 2QCY23, representing more than 11.3% of industry net additions. The Company also expanded its network by investing in 220 new sites.

Ubank’s revenue witnessed an impressive growth of 117% YoY (PKR 4.059 billion) in 2QCY23. The increase in revenue was supported by a rise in deposit amounts to PKR 98 billion (an increase of PKR 32 billion). Additionally, the loan portfolio increased to PKR 65 billion (an increase of PKR 24 billion) in 2QCY23.

During the outgoing period, the deposit customer base and loan base increased to 4.2 million and 399K, respectively. Furthermore, 54% of GLP is secured by gold-backed loans, and Ubank successfully processed 75% of fresh loans via the Digital Loan Acquisition App.

Going forward, the Company expects to resume dividend payouts once the bottom line improves. Diversifying the portfolio is a key strategy to minimize risks. The management aims for more than 20% growth in revenue and achieving the desired EBITDA by the end of this year.

For UBank, the Company anticipates surpassing last year’s numbers due to its aggressive diversification policy towards treasury assets.

According to the management, the country is not likely to achieve 5G service until the start of 2026. Energy efficiency remains a key feature of cost optimization, and the Company is in negotiations with an external party to introduce solar system on its sites.

Important Disclosures


This report has been prepared by Chase Securities Pakistan (Private) Limited and is provided for information purposes only. Under no circumstances, this is to be used or considered as an offer to sell or solicitation or any offer to buy. While reasonable care has been taken to ensure that the information contained in this report is not untrue or misleading at the time of its publication, Chase Securities makes no representation as to its accuracy or completeness and it should not be relied upon as such. From time to time, Chase Securities and/or any of its officers or directors may, as permitted by applicable laws, have a position, or otherwise be interested in any transaction, in any securities directly or indirectly subject of this report Chase Securities as a firm may have business relationships, including investment banking relationships with the companies referred to in this report This report is provided only for the information of professional advisers who are expected to make their own investment decisions without undue reliance on this report and Chase Securities accepts no responsibility whatsoever for any direct or indirect consequential loss arising from any use of this report or its contents At the same time, it should be noted that investments in capital markets are also subject to market risks This report may not be reproduced, distributed or published by any recipient for any purpose.

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