PTCL posts profit after more than four years, says 5G launch planned in May

ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL) has reported a return to profitability after more than four years, a development that came after the acquisition of Telenor Pakistan. Alongside the financial results, the company also said it plans to formally roll out 5G telecom services in May.

At a press briefing on Tuesday, PTCL Group President and CEO Hatem Bamatraf presented the company’s financial performance for the first quarter of 2026. He said PTCL Group revenues rose 58% during January-March 2026 compared with the same period last year.

Bamatraf said the company had faced difficulties in recent years for several reasons, but added that since January 2026, Telenor Pakistan’s financial results had been consolidated into the PTCL Group accounts. He said this had supported continued growth in fixed broadband, enterprise, wholesale and mobile services.

During the January-March 2026 quarter, the group’s consolidated operating profit increased 564% following the inclusion of Telenor Pakistan, while PTCL Group recorded a net profit of Rs3.1 billion. In the corresponding quarter of 2025, the group had posted a net loss of Rs4 billion.

PTCL alone also posted improved results. Its revenue increased 6.5% in the first quarter, operating profit reached Rs4.6 billion, and net profit stood at Rs0.9 billion. PTCL had previously posted a profit in 2021.

Bamatraf said the company was moving into a new stage of sustainable growth and added that after the full merger of Ufone and Telenor, customers would receive better-quality services.

Merger and 5G plans

PTCL management told the briefing that Ufone, a PTCL subsidiary, had obtained a commercial certificate for the launch of 5G services in Pakistan. The company said the formal launch would take place in May.

The company also said the Pakistan Telecommunication Authority (PTA) had formally approved the amalgamation of Pak Telecom Mobile Limited (Ufone) and Telenor Pakistan. According to PTCL, the merger process is now in its final phase and is awaiting some legal formalities.

Questions on dues and regional tensions

During the briefing, PTCL’s top management did not answer questions regarding the release of Pakistan’s outstanding $800 million dues in the context of Islamabad’s debt repayment to the United Arab Emirates (UAE) amid the Middle East conflict involving the US, Israel and Iran.

When asked how close ties between the UAE and Israel could affect PTCL’s business in Pakistan, Bamatraf did not address the matter. PTCL management said they could not comment on political questions or on the $800 million dispute, adding that these were matters between shareholders.

Speaking at the same occasion, PTCL Group Chief Financial Officer Nadeem Khan said the effects of the US-Israel war with Iran would become visible in the second quarter of 2026 beginning in April, both through higher borrowing costs and more expensive fuel. "The future impact depends on ending the conflict and the company has plans to mitigate financial shocks, Khan said.

Another PTCL Group business, Ubank, posted revenue of Rs5.8 billion. The company said its bottom line improved significantly from the previous year, reflecting what it described as a strong recovery in banking operations.