Research Analyst
Nov 16 - 22, 2009

Pakistan Telecommunication Company Limited (PTCL) is the largest telecommunication service provider in Pakistan. 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.

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 in Islamabad, Karachi, and Lahore to facilitate corporate customers.


The financial performance shows the PTCL's key performance structure and its operation. The revenue of the company for the quarter ended September 30 2009 was Rs. 14.5 billion which is 13% lower compared to the corresponding quarter last year. Domestic revenue from voice continued to decline because of erosion in subscribers' base caused by competition and substitution.




. 2009 2008
Revenue 14,472,251 16,610,717
Gross profit 5,092,051 7,157,443
Admin expenses (1,679,311) (2,219,266)
Operating profit 2,972,893 4,554,554
Profit before tax 3,952,081 4,889,856
Profit after tax 2,568,853 3,178,406
EPS (Rs) 0.50 0.62
Source: PTCL

Revenue from international incoming calls was also lower than the same period last year due to downward revision of settlement rate by the regulator. However, revenue from broadband continued to grow and was more than 2 times higher than the same period last year because of increased number of subscribers.

However, launching of new products and services as well as campaigns to achieve enhanced consumer awareness increased the selling and marketing expenses. Increased funds availability on account of better collections especially in last quarter of preceding financial year as well as prudent investment thereof helped to bring in 50% increase in other operating income compared to same quarter last year.

During the quarter, the PTCL earned profit after tax of Rs. 2.6 billion (EPS Rs.0.50) compared to Rs. 3.2 billion (EPS Rs. 0.62) during the same period last year. The Ufone, the wholly owned subsidiary of PTCL, has maintained its high performance and growth in the cellular sector and posted a net profit of Rs. 506 million for the quarter which is 3.3 times higher than the same period last year.


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.


PTCL had a subscriber base of 3.6 million in December 2008, showing a drop of 22% since corresponding period of 2007. PTCL is facing declining subscribers, intensified competition with mobile and WLL operators and extremely low calling rates provided by LDI operators. Merging of its subsidiary Paknet into main operation of company was a positive step taken by PTCL which would result in placing company in a better position for enhanced services.

Similarly improved customers services, attractive tariff packages, value added services like IPTV and broadband services on flat rate are few more areas where PTCL is far ahead of its competitors in each segment. NTC which has been providing fixed line services to specific market has now opened its services to all. There has been growth in subscriber base since last two quarters and in December 2008 total subscribers of NTC were 104,400. Worldcall has a subscriber base of 12,222.


. SEP-07 DEC-07 MAR-08 JUN-08 SEP-08 DEC-08
PTCL 4,695,971 4,597,279 4,405,161 4,273,548 3,831,033 3 ,5 81,387
NTC 100,688 106,336 103,059 103,991 103,870 104,400
Nayatel 13,500 13,500 16,000 16,500 18,000 18,500
World Call 11,418 11,774 11,347 11,502 12,086 12,222
Brain 6,670 7,376 7,376 7,376 7,130 8,250
Union 2,500 3,500 3,500 3,500 3,500 3,700
Total 4,830,747 4,739,765 4,546,443 4,416,417 3,975,619 3,728,459


Despite so many competitors PTCL continues to dominate the telecom 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 down 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, PTCL continues to play the leading role in Pakistan's telecommunication industry.