Pakistan Telecommunication : Q2 - Report 2021

CONTENTS

1. Board of Directors
2. Corporate Information

04-05 Directors' Review 06-07

	Condensed Interim Financial Statements
10-11
Independent Auditors' Review Report
12-13	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

18-26	Notes to and Forming Part of the Condensed Interim Financial Statements
	Condensed Consolidated Interim Financial Statements
28-29	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

34-44 Notes to and Forming Part of the Condensed Consolidated Interim Financial Statements

PAKISTAN TELECOMMUNICATION COMPANY LIMITED

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PTCL - SECOND QUARTER REPORT 2021

BOARD OF DIRECTORS	CORPORATE INFORMATION

Chairman PTCL Board

Dr. Muhammad Sohail Rajput

Members PTCL Board

Abdulrahim A. Al Nooryani

Yusuf Khan

Hatem Dowidar

Hassan Nasir Jamy

Khalifa Al Shamsi

Syed Shabahat Ali Shah

Hesham Al Qassim

Dr. Mohamed Karim Bennis

Management

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

Company Secretary

Saima Akbar Khattak

Group Company Secretary

Legal Advisor

Zahida Awan

Group Chief Legal Officer

Bankers

Conventional

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

Habib Metropolitan Bank Limited

JS Bank Limited

MCB Bank Limited

National Bank of Pakistan

NIB Bank Limited

S.M.E. Bank Limited

Samba Bank Limited

Silk Bank Limited

Sindh Bank Limited

Soneri Bank Limited

Standard Chartered Bank (Pakistan) Limited

Summit Bank Limited

The Bank of Khyber

The Bank of Punjab

The Punjab Provincial Cooperative Bank Limited

United Bank Limited

Zarai Taraqiati Bank Limited

Mobilink Microfinance Bank Limited

Telenor Microfinance Bank Limited

U Microfinance Bank Limited

Islamic

Registered Office

PTCL Headquarters,

Sector G-8/4,Islamabad-44000, Pakistan. Fax: [phone]

E-mail:[e-mail] Web: www.ptcl.com.pk

Auditors

KPMG Taseer Hadi & Co.,

Chartered Accountants

Share Registrar

FAMCO Associates (Pvt.) Limited

8-F, Next to Hotel Faran, Nursery,

Block-6, P.E.C.H.S., Shahra-e-Faisal, Karachi. Tel: [phone]

Fax: [phone]E-mail:[e-mail]

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PAKISTAN TELECOMMUNICATION COMPANY LIMITED

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PTCL - SECOND QUARTER REPORT 2021

DIRECTORS' REVIEW

The Directors of Pakistan Telecommunication Company Limited (PTCL) are pleased to present to the shareholders the financial statements of the Company for the half year ended 30th June 2021. The financial statements have been reviewed by the statutory auditors.

PTCL successfully sustained the momentum of growth from its last quarter's turnaround that had cemented its market standing as the largest fixed line telecom player in the country. The Company posted a significant eight percent growth in its revenues, the highest since 2014, owing to its robust performance. The significant growth in revenues is mainly driven by strong performance in consumer segment led by Fixed Broadband services. During the past quarter, PTCL strongly focused on enhancing customer experience through provision of high quality and fast internet under its flagship 'Flash Fiber' Fiber-To-The-Home (FTTH) project.

The Company is upgrading its existing infrastructure, besides expanding FTTH to newer markets to usher in seamless connectivity for greater customer enablement and experience. FTTH's speedy deployment and strong performance in Corporate and Wholesale segments are the cornerstone in PTCL's enhanced topline growth, which along with focus on cost control program, has significantly increased the company's profitability.

During the period under review, PTCL's revenue of Rs 38 Billion for the half year is 8% higher than same period last year, mainly driven by Broadband and Corporate & Wholesale business segments. The Company has posted operating profit of Rs 2.8 Billion, which is higher by 96% compared to the same period of last year. Company's Net Profit of Rs 3.7 Billion has significantly increased by 38% from last year. PTCL Group posted revenue of Rs 68 Billion in first half of 2021 that is 8% higher as compared to the same period of last year. U Bank continued its growth momentum and has achieved 17% growth in revenue while PTML (Ufone) posted a revenue growth of 5%. PTCL Group delivered strong financial and operational performance and posted a net profit of Rs 2.9 Billion as compared to Rs 33 Million for the same period of last year.

Your attention is drawn to note 11.3 of PTCL's interim financial statements for the period, which describes that matters relating to certain employees' rights under the PTCL pension scheme are pending with various courts, as highlighted by external auditors in their review report.

PTCL Consumer Business showed consistent performance as it reported 4th straight quarter of growth. The company's Fixed Broadband customers crossed 1.5 Million mark, with 44,486 net additions recorded during the period. Due to COVID-19, Voice business was impacted, however, all remaining business segments reported double-digit growth in revenue.

During the first half of 2021, PTCL Fixed Broadband business grew by 13.5% YoY, whereas PTCL IPTV Segment also grew by 14.1%. The groundbreaking PTCL Flash Fiber FTTH service showed a tremendous growth of 52.5%, while PTCL Charji /Wireless Broadband Segment grew by 18.4%. Corporate and Wholesale businesses continued its growth momentum sustaining market leadership in IP Bandwidth, Cloud, Data Center and other ICT services segments. The overall YoY growth in Business Services has been recorded at 8%.

PTCL's Corporate business grew by 14% as compared to the same period last year, while Carrier and Wholesale business continued its growth momentum and achieved 12% overall revenue growth. International voice revenue has declined by 5% due to lower voice traffic and appreciation of PKR against USD.

PTCL continues to develop strategic partnerships with leading corporate entities to offer Software- as-a-Service (SaaS) in the banking, education, Cloud and cyber-security verticals. Furthermore, PTCL, in line with its vision to revolutionize widespread availability of IP connectivity in Pakistan, has signed contract for deployment of Unified IP Edge network for providing next generation IP services.

Additionally, 5G technology was successfully tested in a limited environment in Khyber Pakhtunkhwa by PTCL Group in collaboration with Khyber Pakhtunkhwa Information Technology Board (KPITB), under the umbrella of Department of Science and Information Technology, Khyber Pakhtunkhwa. Ufone's license for providing services in Azad Jammu & Kashmir and Gilgit Baltistan was also renewed for the next 15 years by Pakistan Telecommunication Authority in June 2021.

Being the backbone of Pakistan's connectivity, PTCL Group remains at the center stage to accelerate and support the 'Digital Pakistan' vision through robust telecommunication infrastructure and enhanced customer experience.

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

Dr. Muhammad Sohail Rajput	Hatem Mohamed Bamatraf
Chairman, Board of Directors PTCL	President & Group Chief Executive Officer
Islamabad: July 14, 2021

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PTCL - SECOND QUARTER REPORT 2021

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PTCL - SECOND QUARTER REPORT 2021

NOTES

8

CONDENSED INTERIM

FINANCIAL STATEMENTS

FOR THE SIX MONTHS PERIOD ENDED

JUNE 30, 2021 (UN-AUDITED)

PAKISTAN TELECOMMUNICATION COMPANY LIMITED

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