Report
EUR 4.27 For Business Accounts Only

Pakistan Telecommunication Co. (PTC): 1Q2019 EPS Rs0.4, +95% YoY (+13% QoQ)

  • PTC posted EPS of Rs0.4 in 1Q2019, better than our expectations mainly on the back of higher other income. We attribute this to 1) higher income earned on bank deposits owing to higher interest rates, 2) lower exchange losses and 3) gain on disposal of assets.
  • As of Mar 2019, digital line subscribers remained almost flat at 1.6mn while Evolution Data Optimized (EVDO) subscribers declined by 15% during the same period to 0.27mn. As of Mar 2019, total broadband subscribers in Pakistan reached 68mn where Mobile broadband stood at 66mn.
  • PTC consolidated revenues grew by 11% YoY, mainly supported by increase in revenue of its subsidiary company Ufone and Ubank. Ufone revenues showed double digit growth YoY in 1Q2019 while Ubank (a microfinance bank) depicted significant growth of 53% YoY.
  • We attribute higher Ufone revenues to suspension of taxes by Supreme Court (SC) in Jun 2018 and organic growth. Ufone’s NGMS posted growth of 4.4% to 8.7mn subscribers as of Mar 2019 vs. 8.4mn in Dec 2018.
  • We believe 1) increased competition in mobile subscribers to impact Ufone’s subscriber base, 2) decline in EvDO & DSL subscribers 3) decline in the core operations of the company which is the fixed line, as key risks associated with PTC.

 

Provider
Topline Securities Limited
Topline Securities Limited

Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.

Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.

Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.

JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).

Other Reports from Topline Securities Limited

ResearchPool Subscriptions

Get the most out of your insights

Get in touch