PTC outlook : Ufone’s losses are reducing

Pakistan Telecommunication Company Ltd (PTC) held its corporate briefing session today to discuss 3QCY21 financial performance and the company’s outlook.


Followings are the key takeaways;

• To recall, PTC announced financial results for 3QCY21 wherein company reported unconsolidated earnings of PKR 1.92bn (EPS: PKR 0.38) as compared to PKR 1.37bn (EPS: PKR 0.27) SPLY. This took

cumulative earnings for 9MCY21 to PKR 5.67bn (EPS: PKR 1.11) up by 39%YoY.


• Topline of the group grew by 5.4%YoY with positive contribution by OPCOs, as PTCL revenue grew by 6%, Ufone’s revenue grew by 4% (despite nominal increase in customer numbers) and Ubank’s revenue grew 8% (23%YoY increase in loan portfolio and 67%YoY deposit growth).


• PTCL’s topline on standalone basis grew by 6%YoY, primarily due to 11% growth in Wireline Data Wireless Data (double digit growth in Charji revenue) coupled with 11% growth in Corporate and

Wholesale segment.


• Ufone has been awarded 9MHz spectrum in 1800 MHz band. Even Ufone has been awarded with additional 1.2Mhz spectrum in AJK and GB.


• Commenting on group profitability which is reduced by 51%YoY/44%QoQ due to increase in non operational cost specially in Ufone where in the company booked foreign exchange losses and interest

cost coupled with other areas of non operational cost.


• Group has injected equity worth of PKR13bn in Ufone which is being reflected in non current assets.


• Commenting on Ufone, company is in the view that there is a lot of potential and room in market specially in 4G since penetration of 4G is less than 50% that’s is why management is investing in the

company. While over the last two to three years Ufone’s losses are reducing. The management believe they have plans to bring at breakeven Ufone in next couple of years.


• Commenting on dividend, company is planning certain investments for which company is retaining the liquidity.


• Commenting on how long PTCL fiber network is, it is ~50,00KM all across Pakistan.


• Management were reluctant to reveal targeted no number of towers however they assure that their coverage will be significantly improved by next year.


• To expend the coverage, company has a plan to utilize and equip the existing towers with 4G capabilities coupled with option of sharing towers if there is any incremental benefit. Moreover, there

would be few new sites the company will add in its infrastructure as well.


Courtesy – Spectrum Research:

Posted in Article & Features.

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