PTCL reported a 12% jump in consolidated revenue to Rs120 billion for FY 2025, driven by rapid growth in its Flash Fiber broadband and Business Solutions units. However, the company posted a net loss of Rs9.7 billion, primarily due to an accelerated Expected Credit Loss provision at its digital‑banking subsidiary Ubank. The results highlight strong core telecom performance but rising credit‑risk challenges.
Revenue Growth Drivers
Revenue climbed to about Rs120 billion, up from Rs107 billion the previous year. The surge came from every major segment—fixed broadband, enterprise services, wholesale, and mobile—each posting double‑digit gains.
Flash Fiber Expansion
PTCL’s Flash Fiber, the fiber‑to‑the‑home offering, expanded by an impressive 50 percent. This reflects the booming demand for high‑speed connectivity across Pakistan’s still‑growing digital economy.
Business Solutions Momentum
Business Solutions, PTCL’s suite of ICT services for corporate clients, grew 16 percent. Managed networking, cloud, and data‑center services are fueling the rise, underscoring the appetite for enterprise‑grade digital infrastructure.
Operating Profit Surge
Despite the net loss, PTCL’s consolidated operating profit surged 216 percent year‑on‑year, signaling that core operations are becoming more efficient and generating robust cash flows.
Why the Net Loss Swelled
The widening loss stems from an “accelerated Expected Credit Loss (ECL) provisioning” at Ubank. In plain terms, PTCL set aside a larger cash reserve to cover potential loan defaults—a prudent move amid macro‑economic headwinds such as rising inflation, a depreciating rupee, and slowing consumer spending.
Acquisition of Telenor Pakistan
During the reporting period PTCL completed its purchase of Telenor Pakistan, aiming to bolster its mobile footprint and create cross‑selling opportunities. While the acquisition promises long‑term benefits, integration costs and network harmonisation likely weighed on short‑term profitability.
What It Means for PTCL
PTCL remains Pakistan’s premier integrated telecom and ICT services provider, backed by an expanding fiber network and a solid enterprise portfolio. The 12 percent revenue rise confirms that demand for high‑speed broadband and digital services stays resilient. However, the net loss reminds investors that diversification into financial services carries credit‑risk exposure.
Looking Ahead
Going forward, PTCL’s roadmap hinges on two pillars: sustaining momentum in its core telecom and ICT offerings, and steering its financial services arm through a turbulent credit landscape. If you’re tracking the company, keep an eye on how PTCL balances growth ambitions with rigorous credit risk management.
