ISLAMABAD: Pakistan Telecommunication Company Ltd (PTCL) on Tuesday announced its financial results for the year ended Dec 31, 2018, saying that consolidated net profit improved by 32 per cent while that of its flagship PTCL fell 11pc.

The overall group profit after tax clocked in at Rs5.7 billion for CY18, higher by 32pc, over Rs4.32bn last year.

On the other hand, unconsolidated operating profits decreased by 9pc mainly due to an increase in fuel and power rates, higher subscriber acquisition cost and cable and satellite/network maintenance on account of currency devaluation.

The management attributed continuous reduction in domestic and international voice revenues to increase in illegal/grey traffic, continued conversion of subscribers to over-the-top and cellular services, resulting in declining voice traffic volume.

At a press briefing, media were informed that PTCL group’s revenue for 2018 grew 8pc year-on-year to Rs126.2bn, from Rs117.02bn due to positive contribution by all group companies.

PTCL CEO Dr Daniel Ritz said the group’s revenue growth in fourth quarter accelerated to 13pc with Ufone’s sales up 13pc and UBank 64pc.

On a consolidated basis, the company’s operating profit improved by 198pc to Rs8.99bn by 2018 end as against Rs3.01bn last year.

PTCL’s flagship fixed broadband services posted revenue increase of 6.5pc over 2017. Ritz claimed that corporate business continues to perform strongly and has shown significant growth of 13pc.

Conversion of EVO customers to Charji/LTE has yielded positive results with revenue growth in double digits. However, it has also resulted in a higher subscriber acquisition cost as compared to last year.

The CEO also announced his decision to leave PTCL for personal reasons upon completion of his three-year contract on Mar 1.

The board in its meeting appointed Rashid Khan, currently CEO of Ufone, as PTCL’s chief effective from Mar 2 along with his current post.

Published in Dawn, February 13th, 2019