Pakistan Telecommunication : Q1 - Report 2021

CONTENTS

1. Board of Directors
2. Corporate Information

04-05 Directors' Review

06

Condensed Interim Financial Statements

08-09 Condensed Interim Statement of Financial Position

1. Condensed Interim Statement of Profit or Loss
2. Condensed Interim Statement of Comprehensive Income
3. Condensed Interim Statement of Cash Flows
4. Condensed Interim Statement of Changes in Equity

14-22 Notes to and Forming Part of the Condensed Interim Financial Statements

Condensed Consolidated Interim Financial Statements 24-25 Condensed Consolidated Interim Statement of Financial Position

1. Condensed Consolidated Interim Statement of Profit or Loss
2. Condensed Consolidated Interim Statement of Comprehensive Income
3. Condensed Consolidated Interim Statement of Cash Flows
4. Condensed Consolidated Interim Statement of Changes in Equity

30-40 Notes to and Forming Part of the Condensed Consolidated Interim Financial Statements

PAKISTAN TELECOMMUNICATION COMPANY LIMITED

1

PTCL - FIRST QUARTER REPORT 2021

BOARD OF DIRECTORS	CORPORATE INFORMATION

Chairman PTCL Board

Shoaib Ahmad Siddiqui

Members PTCL Board

Abdulrahim A. Al Nooryani

Kamran Ali Afzal

Hatem Dowidar

Hassan Nasir Jamy

Hesham Al Qassim

Syed Shabahat Ali Shah

Khalifa Al Shamsi

Dr. Mohamed Karim Bennis

Management

Mohammad Nadeem Khan	Saad Muzaffar Waraich
Group Chief Financial Officer	Group Chief Technology and
Adnan Anjum	Information Officer (Operations)
Group Chief Marketing Officer	Shahid Abbas
Jafar Khalid	Group Chief Internal Audit
Group Chief Technology and	Syed Mazhar Hussain
Information Officer (Development)	Group Chief Human Resources Officer
Moqeem Ul Haque	Zahida Awan
Chief Commercial and	Group Chief Legal Officer
Group Corporate Strategy Officer	Zarrar Hasham Khan
M. Shehzad Yousuf
Chief Business Services Officer
Chief Business Operations Officer
Naveed Khalid Butt
Group Chief Regulatory Officer

Company Secretary

Saima Akbar Khattak

Legal Advisor

Zahida Awan

Group Chief Legal Officer

Bankers

Conventional	Islamic
Allied Bank Limited
Askari Bank Limited
Bank Alfalah Limited
Bank Al Habib Limited
Citibank N.A.
Deutsche Bank A.G.
Faysal Bank Limited
First Women Bank Limited
Habib Bank Limited	Registered Office
Habib Metropolitan Bank Limited
JS Bank Limited	PTCL Headquarters,
MCB Bank Limited
National Bank of Pakistan	Sector G-8/4,
Islamabad-44000, Pakistan.
NIB Bank Limited
Fax: [phone]
S.M.E. Bank Limited
E-mail:[e-mail]
Samba Bank Limited	Web: www.ptcl.com.pk
Silk Bank Limited
Sindh Bank Limited	Auditors
Soneri Bank Limited
Standard Chartered Bank (Pakistan) Limited	KPMG Taseer Hadi & Co.,
Summit Bank Limited	Chartered Accountants
The Bank of Khyber	Share Registrar
The Bank of Punjab
The Punjab Provincial Cooperative Bank Limited	FAMCO Associates (Pvt.) Limited
United Bank Limited	8-F, Next to Hotel Faran, Nursery,
Zarai Taraqiati Bank Limited	Block-6, P.E.C.H.S., Shahra-e-Faisal, Karachi.
Mobilink Microfinance Bank Limited	Tel: [phone]
Telenor Microfinance Bank Limited	Fax: [phone]
E-mail:[e-mail]
U Microfinance Bank Limited

2	PAKISTAN TELECOMMUNICATION COMPANY LIMITED 3

PTCL - FIRST QUARTER REPORT 2021

DIRECTORS' REVIEW

The Directors of Pakistan Telecommunication Company Limited (PTCL) are pleased to present to the shareholders, the un-audited financial statements of the Company for the three months period ended 31st March 2021.

Despite the 3rd wave of Covid-19, PTCL ended Q1 2021 with strong financial performance, leading to an optimistic start for 2021. PTCL posted 7% growth in revenues which is the highest since Q1 of 2014.

PTCL's revenue of Rs 18.9 Billion for the quarter is 7% higher than Q1 2020, mainly driven by Broadband and Corporate & Wholesale business segments. Speedy deployment of Fiber-To-The- Home (FTTH) network under project 'Sunrise Pakistan', aggressive commercial strategy that aimed at improving customer experience and expansion of digital portfolio successfully helped the company get topline growth back on track. This topline growth and efficient cost control program improved bottom line significantly.

The operating profit of the company has increased by Rs 1.3 Billion compared to the same period of last year as a result of growth in the topline, coupled with varied management initiatives for cost optimization. Net Profit of Rs 1.7 Billion has significantly increased by 42.6% from last year.

During the period under review, PTCL Group posted revenue of Rs 33.9 Billion in Q1, 2021 that is 6.7% higher as compared to the same period of last year, which was mainly contributed by PTCL and Ubank. UBank continued its growth momentum and has achieved a 26.5% growth in its quarterly revenue over same period of last year. Whereas PTML's (Ufone) revenue remained stable despite stiff competition in the cellular market. PTCL Group posted a net profit of Rs 1.6 Billion as compared to a loss of Rs 0.4 Billion for the same period of last year.

During this quarter, PTCL remained engaged to improve overall customer experience by improving network stability, reducing complaints resolution times, and introducing various customer care processes to proactively manage customer services. PTCL also started offering flash fiber services to their existing customers to ensure a continuous improvement in overall service standards. A separate PTCL Flash Fiber website was also launched that is customer friendly, easy to navigate and has received positive feedback from customers. Through this website, a comprehensive, highly targeted and geo-fenced customer acquisition campaign on digital mediums has been successfully carried out. Multiple campaigns and lucrative offers for the customers such as '50% off on device', 'CharJi Unlimited Cash-on-Delivery' and 'upgrade with absolutely free device' helped in uplifting brand and expanding PTCL CharJi footprint across Pakistan. With these initiatives PTCL managed to improve overall customer happiness index by 10% as compared to Q1 2020.

PTCL Consumer Business reported 4th straight quarter of growth. Fixed Broadband customers crossed 1.48 Million mark, with 30,000 net additions recorded for the quarter. Apart from Voice Business, which is severely impacted by COVID-19, all other business segments reported revenue growth in double-digits. PTCL Fixed Broadband business grew by 12.3% YoY whereas PTCL IPTV Segment also grew by 11.1% YoY. PTCL Flash Fiber (FTTH) service providing customers with fastest, stable and best internet in town, showed a significant growth of 47.1% YoY. PTCL CharJi / Wireless Broadband Segment grew by 11.1% YoY.

Corporate and Wholesale businesses continued their growth trajectory proving its market leadership in IP Bandwidth, Cloud, Data Center and other ICT services segments. Corporate business grew by 11.9% as compared to the same period last year. Carrier business continued its growth momentum and achieved 13.5% overall revenue growth YoY. International voice revenue has declined due to lower voice traffic and appreciation of PKR against USD.

PTCL embarked on a journey in developing partnerships to offer software as a service (SaaS) in the banking, education, Cloud and cyber-security verticals. Additionally, PTCL was awarded major digital enablement projects that among others included Utility stores - for the digital

transformation of 4,000+ branches, UBL - for hosting of the primary infrastructure in a purpose- built Tier-3 site and Bata Pakistan - for Data Center & connectivity of its 450 outlets.

The Group also successfully conducted 5G trial in a limited environment showcasing a remote surgery test case for the first time in Pakistan. With the renewal of its integrated services license for the next 25 years, the company has accelerated investments in developing state-of-the-art telecommunication infrastructure in Pakistan, which further strengthened its position as the backbone of connectivity in the country. During Q1, Universal Service Fund (USF) also awarded two contracts to PTCL worth Rs 3 Billion for provision of Optic Fiber Cable in interior Sindh to connect the underserved areas. PTCL embarked on a milestone achievement by introducing Balochi Language for its customers of Baluchistan and became the first telecom operator in Pakistan who is serving customers in 5 different languages.

As a national company, PTCL continues its contribution towards Corporate Social Responsibility and started a nationwide Clothing Drive for the employees of both PTCL and Ufone. More than 10,000 clothing articles were collected and distributed to the most deserving families across Pakistan. Furthermore, the Rashid Khan Trust - previously known as the PTCL Razakaar Trust continued to cater for the deserving PTCL employees through cash donations and in-kind felicitations.

PTCL has started to move towards contemporary performance management to effectively gauge and reward employee performance during the hybrid working model. High potential talent was recognized at PTCL's most prestigious event; the Annual Presidential Business Excellence Awards in February this year. More than 100 talented employees were awarded for their outstanding business contributions. Your company was also able to sign an MoU with the CBA after successful negotiations.

The management and employees of PTCL remain committed to provide quality services at competitive prices through concerted efforts to be the partner of choice for our customers and also to improve shareholders' value.

On behalf of the Board

Siddiqui	Mohammad Nadeem Khan
Chairman, PTCL Board	For and on behalf of President & Chief Executive Officer
Islamabad: April 11, 2021

4	PAKISTAN TELECOMMUNICATION COMPANY LIMITED 5

PTCL - FIRST QUARTER REPORT 2021

CONDENSED INTERIM

FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED

MARCH 31, 2021 (UN-AUDITED)

6	PAKISTAN TELECOMMUNICATION COMPANY LIMITED 7