ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL) CEO Dr Daniel Ritz has left the company while Ufone CEO Rashid Khan has become the new CEO while company has shown profits for the first time in five years.
PTCL, the country’s leading telecom and ICT services provider, announced its financial results for the year ended December 31, 2018, at its Board of Directors’ meeting, held in Islamabad today on Tuesday.
Group’s revenue for the year 2018 has grown year on year by 8.0 percent to Rs126.2 billion as a result of positive contribution by all group companies.
PTCL Group’s revenue growth in the fourth quarter accelerated to 13 percent year on year. Ufone revenue has increased by 13 percent year on year, UBank, a microfinance banking subsidiary of PTCL, has shown significant growth of 64 percent in its revenue over last year. PTCL Group’s operating profit and net profit for the year have improved by 198 percent and 32 percent respectively. Like-for-like, net profit of PTCL Group is higher by 22 percent compared to last year.
PTCL revenue of Rs70.1 billion for the year is 0.7 percent higher than last year, with quarter four showing an accelerated growth of 3.4 percent year on year. In 2018, PTCL’s revenue has registered year on year growth for the first time since 2014.
In 2018, three quarters of PTCL’s revenue base has shown a growth over last year. PTCL’s flagship Fixed Broadband services posted revenue growth of 6.5 percent over 2017. For the 51 exchanges fully transformed to date under the network transformation program year on year revenue growth is even higher at 12.4 percent.
PTCL spokesman said the investment in transformation of network exchanges has resulted in enhancing customer experience by reducing network faults by 36 percent and repeat faults by 50 percent, along with providing higher bandwidths beyond 100Mbps, bundled with Triple Play services.
Corporate business continues to perform strongly and has shown significant growth of 13 percent over last year by signing new customers in Managed Services and Cloud Infrastructure Services resulting in 154 percent and 188 percent growth respectively in these two segments.
There is continued decline in domestic and international voice revenues due to increase in illegal/grey traffic termination, continued conversion of subscribers to OTT and cellular services, resulting in declining voice traffic volumes, he said.
PTCL’s operating profit for the year is lower by 9.0 percent, compared to 2017 mainly due to increase in operating cost on account of currency devaluation and higher subscriber acquisition cost.
Further, non-operating income has also declined due to reduced funds as compared to last year. Net Profit for the year is Rs7.4 billion which is 11 percent lower compared to last year as reported (and 8 percent lower if adjusted for one-offs), driven by lower operating profit and lower non-operating income.
The CEO of PTCL, Dr Daniel Ritz, has decided to leave PTCL for personal reasons upon completion of his 3-year contract on March 1, 2019, in order to re-unite with his family in Europe. The PTCL Board of Directors at its meeting today has appointed Rashid Khan, currently CEO of Ufone, to the post of CEO PTCL effective March 2, 2019, with an additional charge of CEO Ufone.
Dr Ritz said, “It has been a privilege and an honor to lead PTCL and the PTCL Group through a period of significant transformation. I am proud of what we have achieved as a team and the results announced today with PTCL returning to top line growth for the first time after several years of revenue decline are a testimony to this.”
Hatem Dowidar, CEO Etisalat International, commented, “Daniel has taken the helm of the company at a critical time where he has succeeded in laying the foundation for a future network.”
Maroof Azfal, Chairman PTCL, added, “On behalf of Government of Pakistan, I would like to thank Daniel sincerely for his personal leadership and achievements in putting PTCL, an important national asset, back on the growth track.”