S.KAMAL HAYDER KAZMI,
Research Analyst, PAGE
July 23 - 29, 2012
FINANCIAL PERFORMANCE (Rs in '000)
|Non current liabilities||26,706,503||26,207,075|
|Non current assets||108,973,114||113,508,217|
Pakistan Telecommunication Company Limited (PTCL) has set to redefine the established boundaries of the telecommunication market and is shifting the productivity frontier to new heights. Today, PTCL is going to be the customers' first choice in the future as well, just as it has been over the past six decades. The company has the largest copper infrastructure spread over every city, town and village of Pakistan with over million installed lines. The network has over 6 million PSTN lines installed across Pakistan with more than 3 million working. Furthermore, the company has installed a capacity of broadband spanning over more than 0.6 million ports spread across 605 cities and town within the country. The company has over 10,400 km fully redundant, fiber optics DWDM backbone network. It connects over 840 cities and towns with 270G bandwidth. During the period under review, PTCL Group earned revenues of Rs. 83 billion which were 8 per cent higher compared to same period last year. The revenues of PTCL were Rs. 44 billion registering 8 per cent increase whereas revenues of PTML (Ufone), the wholly owned subsidiary of PTCL, grew by 7 per cent.
The Group's net profit after tax remained at Rs. 7 billion during the period under review depicting a decrease of 11 cent over corresponding period last year. PTCL's net profit after tax was Rs. 4.2 billion which is 15 per cent lower than profit in the same period last year mainly on account of decrease in other operating Income.
During the period under review, PTCL, the only integrated service provider in the country, continued to introduce innovative products and services based upon latest available technologies to meet the diversified needs of its customer base. PTCL's DSL, the wire line broadband service, is the market leader with 95 per cent share. The DSL subscribers' base was increased by 24 per cent which significantly contributed in the revenue growth. An innovative product branded as Jadoo Box was introduced which ensures uninterrupted connectivity through combination of wire line (DSL) and wireless (EVO) broadband technologies.
During the period various schemes were also launched, examples of which were free WiFi modems with different packages for new DSL connections, unlimited download for 256Kbps subscribers for specified time period, re-launch of unlimited double-up packages with value propositions coupled with reduced calling rates, upgrading the existing 1Mbps subscribers to 2Mbps at the same price for a limited period and promotional packages in USF areas. Besides, a fair usage policy was also introduced during the period to rationalize bandwidth usage and, hence, to improve the overall customer experience. The renewed focus on Smart TV (the IPTV service) resulted in 39 per cent increase in its customer base. Further improvements like enhanced features, content enrichment, improvement in entertainment portal and availability of Smart TV on 3G EVO Tab are promising. PTCL has also commenced FTTH in major urban areas with an objective to meet an increased demand of higher bandwidth and superior quality of service. The success of broadband services of PTCL was instrumental in making Pakistan one of the fastest growing countries in the world in terms of broadband growth. With the objective of increasing landline usage, international calling rates were made more attractive. Special promotions were also offered on occasions of Ramadan, Eid, Hajj and Christmas. During the nine months' period, 'EVO' the wireless broadband service based on 3G technologies, witnessed a 59 per cent growth in its customer base. The growth is a result of sustained efforts in introducing innovative products and packages based upon latest technology. The EVO Tab is a 3G enabled Android Tablet with built-in EVO wireless broadband for high speed on-the-go internet connectivity. Another product is EVO Droid, a 3G enabled Android GSM Smart phone with built in EVO. Both these products are the first of their kind in Pakistan. Various new packages and promotions were also introduced including a mid-tier unlimited package of 256Kbps for budget conscious consumers, prepaid package options for EVO Tab subscribers and free EVO devices on advance payment of three to four months' rentals. To facilitate PTCL V-fone customers, various packages with flexible tariff were offered. Examples of these promotions are Grand V-charge Offer, Azaadi Offer, Non-stop Package, Double Dhamaka Offer and Islamic Portal VAS Services. Further, beside the attractive mobile calling rate, airtime incentives were also offered to V-fone subscribers. The Company continued to expand its services to the corporate customers. The enhanced focus on V-SAT and IP-MPLS services resulted in engaging leading enterprises at national and international level in provision of these services. Also, the Data centre infrastructure was leased for data hosting to some of the large public and private enterprises of repute. Further, PTCL made contractual arrangements to provide managed servers and their hosting in the data centers to numerous provincial education governing bodies. PTCL also plans to harness the potentials in surveillance market by developing and offering suitable solutions at affordable prices. During the period under review, PTCL maintained its presence in electronic and print media effectively promoting its brands, products and services. A major communication initiative was built around a series of commercials featuring top celebrities from around the world.