Pakistan Telecommunication : Transmission of Quarterly Report for the Period Ended June 30 2023

SECOND QUARTER REPORT 2023

PTCL - SECOND QUARTER REPORT 2023

CONTENTS

1. Board of Directors
2. Corporate Information

04-05 Directors' Review 06-07

	Condensed Interim Financial Statements
10-11
Independant 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

2 PTCL - SECOND QUARTER REPORT 2023

BOARD OF DIRECTORS

Chairman PTCL Board

Navid Ahmed Shaikh

Members PTCL Board

Abdulrahim A. Al Nooryani

Ahad Khan Cheema

Mikhail Gerchuk

Imdad Ullah Bosal

Dr. Mohamed Karim Bennis

Dr. Ahmed Mujtaba Memon

Brooke Marie Lindsay

Khalid Murshed

PAKISTAN TELECOMMUNICATION COMPANY LIMITED

PTCL - SECOND QUARTER REPORT 2023 3

CORPORATE INFORMATION

Management

Hatem Mohamed Bamatraf

President & Group Chief Executive Officer

Muhammad Shoaib Baig

Group Chief People Officer

Mohammad Nadeem Khan

Group Chief Financial Officer

Zahida Awan

Group Chief Legal Officer

Naveed Khalid Butt

Group Chief Regulatory Officer

Jafar Khalid

Group Chief Technology Officer

Ahmad Kamal

Group Chief Customer Care Officer

Zarrar Hasham Khan

Group Chief Business Solutions Officer

Muhammad Shehzad Yousuf

Chief Business Operations Officer

Shahid Abbas

Group Chief Internal Audit

Syed Atif Raza

Group Chief Marketing Officer

Company Secretary

Saima Akbar Khattak

Group Company Secretary

Legal Advisor

Zahida Awan

Group Chief Legal Officer

Registered Office

PTCL Head Office,

Room #17, Ground Floor (Margalla Side), Ufone Tower, Plot #55-C,

Main Jinnah Avenue, Sector F-7/1, Blue Area, Islamabad

Fax: [phone]

e-mail: [e-mail]

Web: www.ptcl.com.pk

Auditors

KPMG Taseer Hadi & Co.,

Chartered Accountants

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

HBL Microfinance Bank

JS Bank Limited

MCB Bank Limited

National Bank of Pakistan

S.M.E. 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

Al Baraka Bank (Pakistan) Limited

Bank Islami Pakistan Limited

Dubai Islamic Bank Pakistan Limited

Meezan Bank Limited

MCB Islamic Bank Limited

Share Registrar

FAMCO Associates (Pvt.) Limited

8-F, Near Hotel Faran, Nursery,

Block-6, P.E.C.H.S., Shahra-e-Faisal, Karachi.

Tel: [phone]

Fax: [phone]

E-mail:[e-mail]

PAKISTAN TELECOMMUNICATION COMPANY LIMITED

4 PTCL - SECOND QUARTER REPORT 2023

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 2023. The financial statements of the Company have been reviewed by the statutory auditors.

Throughout the first half of 2023, PTCL Group has sustained its momentum, further solidifying its position as the leading integrated telecom service provider in Pakistan. Despite the prevailing challenging macroeconomic conditions, the Group has achieved a remarkable 26.8% revenue growth compared to the same period of last year. This substantial increase in revenue is primarily attributed to the exceptional performance across multiple segments, including fixed broadband, mobile data, business solutions and banking services.

The business landscape in 2023 continues to be influenced by the adverse impact of macroeconomic challenges that arose in 2022. The escalating energy and fuel tariffs present ongoing obstacles for telecom operators, making it difficult to deliver high-quality services to consumers at affordable prices. Delays in LC opening have affected the operators' network expansion plans. Significant devaluation of the Pakistani Rupee in the first quarter, coupled with rising interest rates and additional super tax over and above regular corporate tax, has greatly impacted the profitability. To mitigate the effects of these challenging issues, policy intervention by the Government is required to provide much needed relief to the sector.

During the period under review, PTCL Group's revenue of Rs 90.9 billion is 26.8% higher as compared to the same period of last year. The Group's profitability was, among other factors, particularly affected by significant Rupee devaluation in the first quarter as the Group has unhedged FOREX liabilities. The Group has posted a net loss of Rs 8.5 billion for the period. PTCL continued its growth momentum by posting 17.3% YoY revenue growth. PTML's (Ufone) revenue grew by 22.4% as compared to the same period of last year. U Bank has achieved 96.5% growth in its revenue over the same period of last year.

PTCL's revenue of Rs 46.9 billion for the period is 17.3% higher than 2022, mainly driven by growth in Carrier & Wholesale and Broadband segments. The company has posted an operating profit of Rs 2.9 billion with an impressive 57% growth over last year and a net profit of Rs 6.9 billion. Increase in non-operating income due to translation gain on the Company's forex denominated receivables and gain on disposal of obsolete assets due to upgrade and fiberization of the network, played a significant role in achieving 34.5% increase in the net profit as compared to same period of last year.

PTCL achieved 17.2% revenue growth over the same period last year in the fixed broadband business. The Company further strengthened its flag ship FTTH brand, 'Flash Fiber' by achieving significant net subscriber additions through exceptional customer experiences and aggressive expansion of fiber network across the country which played a vital role in achieving significant increase in FTTH revenue by 106.5%. IPTV segment also showed a 5.8% revenue growth YoY. Voice and wireless revenue streams continue the declining trajectory as they are impacted by OTT services and tough competition from other cellular operators.

The business services segment continued its momentum sustaining market leadership in IP bandwidth, cloud, data center, and other ICT services segments. PTCL's enterprise business grew by 21.1% as compared to last year, while carrier and wholesale business continued its growth momentum and achieved 34.9% overall revenue growth. International voice revenue has increased by 18.6% as compared to last year. Despite the current challenging economic environment, overall Business Solutions revenue has shown a remarkable 27.4% year-on-year growth.

As the national telecom carrier and connectivity backbone in Pakistan, PTCL Group is committed to deliver innovative solutions that drive the growth of a 'Digital Pakistan'. This is achieved through the establishment of robust telecommunication infrastructure and a wide range of services, all aimed at enhancing the customer experience and accelerating progress in the country. PTCL collaborated with Vodafone to bring industry leading IoT products, services and solutions to the Pakistani market. The partnership will allow to develop and deliver a fullsuite of end-to-end

PAKISTAN TELECOMMUNICATION COMPANY LIMITED