Research Analyst
Dec 08 - 21, 2008

Pakistan Telecommunication Company Ltd (PTCL) is the largest telecommunication providers in Pakistan. Undoubtedly PTCL is Pakistan's most reliable and largest converged services carrier providing all telecommunications services from basic voice telephony to data, internet, video-conferencing and carrier services to consumers and business all over the country. PTCL also contributes to be the largest CDMA operators in the country with 0.8 million V.fone customers. The management and employees of PTCL are committed to provide quality services at competitive rates through optimization of services and operation support systems for achieving enhanced revenue and improved shareholders value. Currently, PTCL has established Corporate Customer Centres to facilitate corporate customers and these centres have been established in Islamabad, Karachi and Lahore.

Local Calls Rs. 1 for 3 min (On Net including Vfone)
NWD Calls Rs. 1 for 1 min (On Net including Vfone)
Mobile Calls Rs. 1.25 for 1 min
Applicable only on Sunday
Source; ptcl


Pakistan Telecommunication Company Ltd's Revenue during September 30, 2008 was Rs. 16.6 billion, showing a growth of 5.3% as compared with the same quarter last year, despite severe competition and current economic conditions. Out of the total revenue, the Domestic revenue was Rs.14.1 billion and the International revenue was Rs. 2.5 billion. The increase in revenue was mainly attributable to domestic long distance, international outgoing and incoming calls. The operating cost was decreased by 0.6% in September 30, 2008 as compared to the same quarter last year inspite of high inflation, decrease in the value of Pak-rupee and unprecedented escalation in fuel prices. The financial charges have increased because of net foreign exchange loss. The Net Profit for the quarter 2008 increased to Rs. 3.2 billion (EPS Rs.0.62) from Rs. 3.0 billion (EPS Rs.0.59) for the same quarter last year, showing a growth of 5.5%. Ufone (PTML), a wholly owned subsidiary of PTCL has posted Net Profit of Rs. 155 million for the quarter.

(Rs in thousand)
INDICATORS Sep 30, 2008
Revenue 16,610,717
Operating cost 12,056,172
Operating profit 4,554,545
Profit before tax 4,889,856
Profit after tax 3,178,407
EPS (Rs) 0.62
Source: ptcl


At present, PTCL is in the process of implementing robust investment plan to improve network infrastructure and quality of service for its customers. PTCL's management is committed to facilitate its customers by offering new value added services like email account, web-hosting, free internet access on telephone lines and attractive pricing packages including zero line rent on V-phone (WLL) etc. In order to cater for the bandwidth hungry broadband applications and meet customer's requirements that require bandwidths greater than what is currently provided through DSL technologies, PTCL will be deploying GPON FTTH (Fiber to the Home) Technology and this will start immediately as pilot projects in the three major cities of Karachi, Lahore and Islamabad . On 14th august 2008 the company's new product IPTV was launched and now PTCL broad band service is available in over 100 cities of the country.


PTCL is conscious of increasing its customer base and taking measures to maintain its leading position in the market. The company's numbers of important projects are at the final stage of implementation like enterprise resources planning (ERP), Billing and customer care, network operations center etc. Once these systems become fully operational, PTCL will be transformed into one of the best equipped modern telecom services provider of the country.

INDICATORS   2008 2007 2006
Gross Margin (Operating Profit Margin) % (12.40)* 28.67 39.66
Net Margin % (4.62) 23.96 30.07
Return on Operating Assets % (3.64) 20.56 27.98
Debtor's Turnover Times 4.60 4.46 4.14
Return on Equity % (2.71) 14.45 20.21
Debt : Equity Ratio 14:86 14:86 14:86
Leverage % 28.71 27.92 31.27
Current Times 1.73 2.22 1.66
Quick Times 1.53 2.06 1.54
Earning per Share Rs. (0.55) 3.07 4.07
Revenue Rs. (m) 61,086 65,277 69,085
Profit Before Tax / (Loss) Rs. (m) (4,463) 23,744 30,974
Profit After Tax / (Loss) Rs. (m) (2,825) 15,639 20,777
Reserves Rs. (m) 32,183 32,249 31,992
Shareholders' Equity Rs. (m) 97,888 110,913 105,475
Current Assets Rs. (m) 42,611 53,561 50,168
Non Current Liabilities Rs. (m) 17,466 17,460 16,489
* Gross Margin is net-off VSS cost
Source: ptcl


Despite so many competitors PTCL continues to dominate them in the market. No doubt, PTCL is maintaining a leading position in Pakistan as an infrastructure provider to other telecom operators and corporate customers of the country. It has the potential to be an instrumental agent in Pakistan's economic growth. PTCL has laid as optical fibre access network in the major metropolitan centres of Pakistan and local loop services have started to be modernized and upgraded from copper to an optical network. Recently, the Company is providing Online Customer Services System for the convenience of the customers. Now the customers can submit their applications through internet. With all these factors PTCL continues to play the leading role in our telecommunication industry and more so in the future.