INTRODUCTION:

Pakistan Telecommunication Company Limited (PTCL) is the biggest telecommunication

company in Pakistan. PTCL offers telephonic facilities to the country and is the strength for
country’s telecommunication organization. PTCL is on foremost position in Pakistan as an
infrastructure provider to other telecom operators and corporate customers of the country. The
company comprises of around 2000 telephone connections crosswise Pakistan. They deliver the
biggest fixed line (land-line) linkage, presently having 4.8 million fixed line consumers. GSM,
CDMA and Internet are other facilities of PTCL. The Government of Pakistan sold 26% shares
and control of the company to Etisalat (U.A. E’s telecom company) in 2006. The Government of
Pakistan 62% of the shares while the remaining 12% are with the general public. PTCL also
delivers Wireless Telephonic linkage by the name of ‘Vfone’, having 1.25 million active
consumers. Ufone, which is the second leading cellular network in the state, is also kept as a
subsidiary of PTCL. Ufone has about 7.06 million mobile subscribers and a market share of
nearly 30% currently in Pakistan. PTCL has the probable to be a significant means in Pakistan’s
financial growth. It has placed the Optical Fiber Access Network know-hows in major resident
cities of Pakistan and local loop services have started to be modernized and upgraded from
copper to an optical network.
Privatization of PTCL

The procedure of the privatization of the public possessed and coped PTCL was originated in
November 2004. Initial in January 2005, 18 corporations listed their EOI (Expressions of
Interest), out which 3 buyers capable for the final bidding which held on June 18, 2006. Dubai
based company Consortium of Emirates Telecommunication Corporation (Etisalat) and Dubai
Islamic Bank, Etisalat International Pakistan (EIP) gave the highest bid US $ 1.96 per share,
equivalent to PKR 117.01 per share, which translates into US 2,598,960,000 (2.599 billion) or
PKR 155,157,912,000.00. After the purchase of shares of PTCL Etisalat was given permission to
fully control the management, which is against the provisions of Companies Ordinance of
Pakistan, 1984.

After privatization of PTCL, the corporation remained surrounded by numerous arguments and
disputes, mostly due to corrupt management by PTCL administration and lack of interest from
Government. All this resulted in bringing down the net profit of PTCL from Rs. 29 billion before
privatization to mere Rs 10 billion

Mission:
To be the partner of choice for our customers, to develop our people and to deliver value to our
shareholders.
Vision:
To be the leading and most admired Telecom and ICT provider in and for Pakistan.
Core values:

 We treat everyone with respect, dignity and responsibility.

 We are passionate about serving our customers. Their satisfaction is a key measure of
our success.

 We seek and value everyone’s contribution. Together we are strong.

 We shape our own destiny by being proactive and open to new ideas.

Product portfolio:
Business & Corporate Users

For clear communication the first choice of business circles is PTCL landline telephone, for
local, nationwide and international calling. Today businesses can have 10-100 lines with modern
day services to meet their needs. These include options like Caller-ID, call-forwarding, call-
waiting, Call Barring, to name a few.

White Label Services

PTCL customers can now provide uninterrupted services to their clients without undertaking
large scale investment in infrastructure or developing expertise in their own network.

PTCL White Label Services are focused on speed and simplicity at minimal capex. This enables
PTCL customers to offer their own branded WLL, DSL etc. to customers nationally, together
with an array of key support services.

Landline

PTCL landline has always been a part of family and providing services from generations and it
continues to be the primary choice of customers for making voice calls for many decades. PTCL
gives its customers highest quality at very affordable rates along with attractive packages and
Value Added Services to choose from. PTCL offers many attractive packages like Freedom
Package, International Packages, Mobile Buckets & Double Up Unlimited (double play services)

EVO Wireless Broadband

PTCL EVO Wireless Broadband is Pakistan’s fastest wireless internet which offers its customers
“superior high-speed wireless internet experience”. EVO Wireless Broadband is enabling the
wireless broadband revolution in Pakistan like never before. PTCL EVO has revolutionized the
way people connect to the internet. PTCL EVO gives its customers the advantage of seamless
internet connectivity across Pakistan. EVO coverage is in over 350 cities, whereas EVO
customers can also enjoy CDMA-1X data rates of up to 153.6 Kbps at more than 1000
destinations across Pakistan.

PTCL Introduced EVO Nitro in Pakistan - “The World’s first & most cutting-edge EV-DO
Rev.B commercial network”. PTCL is the first operator in the world to commercially launch EV-
DO Rev.B products, which offer blazing fast speeds of up to 9.3 MBPS.

PTCL introduced Pakistan’s First enabled Smartphone Android Tablet—EVO Tab. Powered by
Google Android Froyo 2.2 OS, EVO Tab is a 7’’ capacitive multi gestures touch screen tablet
packed with features of both a tablet and a GSM phone that lets you surf, talk, tweet & do a lot
more simultaneously on-the-go in more than 350 cities nationwide

PTCL has introduced pocket-sized EVO 3.1 mbps & Nitro 9.3mbps Wi-Fi Clouds that enable its
customers to create instant Wi-Fi hotspot. Users can connect up to 5 Wi-Fi gadgets
simultaneously, use these as external storage devices via the provided Micro SD Card slot, and
also use these to charge other devices. Both the Clouds have a super-charged built-in battery that
lasts up to 12 hours.

Introducing Pakistan’s first Wireless Broadband USB modem with built-in Wi-Fi hotspot - EVO
Wingle is all out & about! The most talked about futuristic Wi-Fi tool that lets you effortlessly
connect multiple Wi-Fi gadgets simultaneously at Hyper Speeds of up to 9.3 Mbps* in over 250
cities, and auto switch over to EVO 3.1 Mbps speeds in over 350 cities. It lets you connect ’n’
share effortlessly through any external USB power adapter.

Broadband Pakistan

The largest and the fastest growing Broadband service in Pakistan, PTCL Broadband is making
great positive changes in the lives of millions of people living in the country. Serving over 1.3
million satisfied customers in over 2000 cities and towns across Pakistan, PTCL has brought
revolutionary efficiency and effectiveness in all segments of the society, be it the rural or the
urban. Since its launch on 19th May 2007, all PTCL Broadband packages are designed for users
to experience high-speed internet access with unmatched reliability, affordability and
connectivity all at the same time.

Unique offers that make PTCL Broadband unmatchable are special packages for the student
segment, FREE Wi-Fi modem, as well as FREE dial up service for Broadband customers. PTCL
also offers FREE personalized e-mail accounts exclusively for all its broadband users. Offering
the nation’s most popular Broadband service, Broadband Pakistan is contributing in socio-
economic development of Pakistan and has rightly positioned PTCL as the nation's information
backbone. In addition to the positive contributions made, new discounted packages are also
continuously being introduced in order to benefit the customer.     

Smart TV 

PTCL entered the media sector on 14th August 2008, by launching a digital interactive television
service for the first time in Pakistan. PTCL brought Pakistan in the list of a few countries across
the globe that offer this state of the art interactive TV service to its subscribers. PTCL SMART
TV service using its state of the art Broadband network employs the IPTV (Internet Protocol TV)
technology.  

Branded as ‘PTCL Smart TV’, the service includes Interactive Television, Broadband and voice
telephony all at the same time on PTCL’s telephone line. Besides offering the highest digital
quality TV picture, the most revolutionary section of this offering is the ability to watch
programs of previous four days; this feature is called catch up TV. The service is available in
more than 150 cities across Pakistan and PTCL is planning to expand to all remaining cities and
towns across the country during the coming years

 V-fone

PTCL also continues to be the largest CDMA operator in the country with approximately 1.4
million Vfone customers. It gives the liberty of payment in both prepaid and postpaid options. 
International Network

PTCL’s ability to support both individual and corporate customers on a cross-border basis is
anchored by its extensive network of submarine cables.
In order to ensure service availability to expanded customer base of PTCL, the said bandwidth
procurement was strategically spread on each of our existing three submarine cable size. I-ME-
WE, SEA-ME-WE3 and SEA-ME-WE4. PTCL is the only telecom operator in Pakistan having a
network of three redundant and resilient submarine cable systems thus offering its customers
better quality of service.  

Satellite Communication

PTCL has Intelsat Standard Earth Stations near Karachi and Islamabad. These installations
provide the diversity for International voice connectivity and also work as Hub for domestic
satellite users. There are four Intelsat Standard B Earth Stations at Islamabad, Gilgit, Skardu and
Gawadar.

Collaboration with Netflix

In October 2016, PTCL and Netflix signed a collaboration agreement to provide its customers,
without commercials, high quality streaming content.

Profit and loss statement:

2017 2016
Rs.000 Rs.000
Revenue 69,757,391 71,420,100
Cost of services (51,043,,742) (50,358,343)
Gross profit 18,713,649 21,061,757
Administrative and general expenses (8,617,477) (8,770,136)
Selling and marketing expenses (2,947,347) (3,129,868)
(11,564,824) (11,900,004)
Operating profit 7,148,825 9,161,753
Voluntary separation scheme cost - (4,601,379)
Other income 6,001,194 5,834,131
Finance cost (304,611) (193,708)
Profit before tax 12,845,408 10,200,797
Provision for income tax (4,495,894) (3,366,263)
Profit after tax 8,349,514 6,834,534
Earnings per share 1.64 1.34

Financial position of the company:

ASSETS 2017 2016
Rs.000 Rs.000
Non-current Assets
Property, plant and equipment 98,250,679 94,779,483
Intangible assets 1,882,868 2,332,789
100,133,547 97,112,272
Long term Investments 7,977,300 7,977,300
Long term loans and advances 7,670,324 2,152,757
Investment in finance lease 17,268 38,513
115,798,439 107,280,842
Current Assets
Stores, spares, loose tools 3,633,569 2,742,794
Trade debts 16,040,224 14,227,974
Loans and Advances 1,511,669 676,556
Investment in finance lease 35,137 53,030
Income tax recoverable 15,263,357 14,261,078
Receivable from the government of 2,164,072 2,164,072
Pakistan
Prepayments and other receivables 11,860,653 11,328,073
Short term Investments 5,607,778 24,000,000
Cash and Bank balances 14,243,299 5,902,144
70,359,758 75,355,721
TOTAL ASSETS 186,158,197 182,636,563
Equity and Liabilities
Equity
Share capital and reserves
Share capital 51,000,000 51,000,000
Revenue reserves
Insurance reserve 2,806,993 2,621,288
General reserve 27,497,072 27,497,072
Unappropriated profit 3,647,809 1,894,739
33,951,874 32,013,099
84,951,874 83,013,099
Liabilities
Non-current liabilities
Long term security deposits 553,446 553,049
Deferred income tax 7,086,423 7,264,575
Employees retirement benefits 23,503,831 24,068,008
Deferred government grants 8,059,878 8,594,920
39,203,578 40,480,552
Current liabilities
Trade and other payables 62,002,745 59,142,912
TOTAL EQUITY AND LIABILITIES 186,158,197 182,636,563
Financial analysis:
Year ended Dec 31 2017 2016
OPERATING
Operating profit % 10.25 12.83
margin
Net profit margin % 11.97 9.57
PERFORMANCE
Fixed assets turnover Times 0.79 0.82
Debtor’s turnover Times 4.61 5.01
Return on equity % 9.94 8.08
Return on capital % 6.13 7.51
employed
Retention % 38.92 25.38
LEVERAGE
Debt equity Ratio 28.72 28.72
Debt ratio % 50.56 50.57
LIQUIDITY
Current Times 1.13 1.27
Quick Times 1.08 1.23
VALUATION
Earnings per share Rs. 1.64 1.34
Dividend payout ratio % 61.08 74.62
Dividend per share Rs. 1.00 1.00
Market value per Rs. 13.05 17.18
share

References:
http://www.ptcl.com.pk.
www.go-pakistan.com
http://www. propakistani.pk