The management of Pakistan Telecommunication Company Limited (PTC) held a corporate briefing session on 27th May’21 to discuss the financial result of CY20 and future outlook.

Key Takeaways

· To recall the company posted a consolidated Profit after Tax of CY20 PKR 3,272 against PKR 2,377mn in CY19, up by 38% YoY. The surge came on the back of jump in sales from Ufone and Ubank.

· During CY20, Ufone’s 4G subscriber base witnessed a massive jump of 89% YoY. Furthermore, the company added more subscribers, generating more sales for the company.

· The Ubank business of PTC showcased a significant increase of 50% YoY in CY20, attributable to improvement in deposit base by 98% YoY along with loan portfolio by 43% YoY.

· The company in order to deal with trade loss on trade debts, extended the payment time for customers. With this PTCL’s impairment loss on trade debts reduced by 24% YoY.

· The company has increased monthly voice bundles/packages tariff during the ongoing 2QCY21 by an estimated 1.5%.

· The company explained that it is in process of expanding wireless services and is considering to either built new towers or share towers with other companies.

· The company believes that 5G auction will not happen anytime soon. The government needs to first formulate a 5G policy.

· The company is assessing many options regarding Ufone. One of the options is to participate in 4G and 3G spectrum in Jun’21 order to be competitive.

· The company informed that its Fiber-To-The-Home network received a good response and has improved revenues during the ongoing CY21.

Courtesy – AHL Research