Pakistan Telecommunication Company Ltd. (PTC) held an analyst briefing today to discuss its CY24 financial results and future outlook.
The following are the key points:
- The company posted revenue of PkR220bn in CY24 compared to PkR189bn in SPLY, an increase of 16% Yoy. The said growth in topline was attributable to 12%/25%/2 % Yoy growth in revenue for PTCL, Ufone, and Ubank, respectively.
- Segment-wise, PTCL’s revenue growth was mainly driven by a 20%YoY increase in revenue from Broadband and IPTV services, and an 11%YoY rise in International services revenue, supported by an expanding customer base and higher pricing.
- PTCL recorded the highest FTTH industry subscription growth at 65%YoY, followed by StormFiber with 38%YoY growth. FTTH subscribers surpassed 678,000 as of Sep’24, establishing PTCL as the leading FTTH operator.
- Ufone’s revenue increased 25% year over year, driven by an expanding customer base and increased pricing. Its 4G subscriptions have reached 16 million users, reflecting a 14% year over year growth.
- Management reported that the growth in Ufone’s revenue enabled the company to achieve operational profitability in 1QCY25.
- Regarding Telenor’s acquisition, management stated that all required documents have been submitted to the CCP, and the application is currently in Phase 2 of the approval process. The company is awaiting the NOC, but management is unaware of the reason for the delay.
- Management anticipates significant operating cost optimization following the acquisition. Further, management intends to substantially dismantle the current network infrastructure, leveraging synergies to reduce costs associated with towers in overlapping areas currently operated by Telenor and Ufone.
- Management noted that the government has not provided a timeline for the rollout of the 5G spectrum. PTCL would be interested in participating in the auction if the terms and conditions are favourable for the business. However, if the terms are not favorable—similar to those in the previous auction—the company may opt to refrain from participation.
- Ubank is facing challenges in its lending portfolio due to rising bad debts and the implementation of IFRS-9 during the period. Despite these hurdles, management views microfinancing as a significant growth opportunity in the Pakistani market.
- The scrip is not in our formal coverage.
Courtesy- AKD Research
