PTCL group reports Rs14.1b loss in FY23

Despite achieving revenue growth of 25.8%

ISLAMABAD:

During the financial year 2023, the Pakistan Telecommunication Company Limited (PTCL) group experienced a combined net loss of Rs14.1 billion, despite achieving a revenue growth of 25.8%. This loss surged from Rs10 billion in 2022, primarily due to record-high interest rates and increased business costs.

PTCL Group disclosed its annual financial results for 2023 during its Board of Directors’ meeting held on Tuesday. In an official statement, the company said the most significant development for PTCL during the year was the signing of a Share Purchase Agreement with Telenor Pakistan BV, acquiring a 100% stake in Telenor Pakistan (Pvt) Ltd for an Enterprise Value of Rs108 billion on a cash-free, debt-free basis.

Read PTCL’s Rs108b deal to reshape industry

The Group’s revenue climbed by 25.8% to Rs190.6 billion in FY2024, driven by robust performance in the consumer segment. However, despite this revenue growth, the company faced a net loss of Rs14.1 billion, attributed to rupee devaluation and high interest rates throughout the year, compared to Rs10 billion in 2022.

The Group’s subsidiary, PTCL, achieved a 15.4% revenue growth to Rs96.3 billion. The company reported a net profit of Rs9.4 billion, the highest since 2013, marking a 3.7% increase from the previous year. Ufone, another subsidiary, witnessed a revenue growth of 25.6%, driven by ongoing network modernisation activities for Ufone 4G. Additionally, the ‘U Microfinance Bank’ posted a remarkable revenue growth of 76.5% in 2023.

Published in The Express Tribune, February 14^th, 2024.

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