AVN 65.45 Increased By ▲ 0.50 (0.77%)
BAFL 30.65 Decreased By ▼ -0.86 (-2.73%)
BOP 4.83 Increased By ▲ 0.04 (0.84%)
CNERGY 3.72 Decreased By ▼ -0.12 (-3.13%)
DFML 14.26 Decreased By ▼ -0.15 (-1.04%)
DGKC 41.06 Decreased By ▼ -0.54 (-1.3%)
EPCL 46.56 Decreased By ▼ -0.14 (-0.3%)
FCCL 11.35 Increased By ▲ 0.06 (0.53%)
FFL 5.03 Decreased By ▼ -0.02 (-0.4%)
FLYNG 5.78 Decreased By ▼ -0.04 (-0.69%)
GGL 10.28 Decreased By ▼ -0.17 (-1.63%)
HUBC 67.03 Increased By ▲ 1.39 (2.12%)
HUMNL 5.68 Increased By ▲ 0.02 (0.35%)
KAPCO 27.85 Increased By ▲ 0.10 (0.36%)
KEL 2.19 Increased By ▲ 0.04 (1.86%)
LOTCHEM 24.83 Increased By ▲ 0.48 (1.97%)
MLCF 21.37 Decreased By ▼ -0.11 (-0.51%)
NETSOL 84.20 Decreased By ▼ -0.59 (-0.7%)
OGDC 85.94 Decreased By ▼ -1.31 (-1.5%)
PAEL 11.01 Increased By ▲ 0.03 (0.27%)
PIBTL 4.17 Decreased By ▼ -0.05 (-1.18%)
PPL 74.56 Decreased By ▼ -1.14 (-1.51%)
PRL 13.40 Decreased By ▼ -0.25 (-1.83%)
SILK 0.92 Increased By ▲ 0.03 (3.37%)
SNGP 40.44 Decreased By ▼ -0.89 (-2.15%)
TELE 5.86 Increased By ▲ 0.01 (0.17%)
TPLP 15.42 Decreased By ▼ -0.22 (-1.41%)
TRG 111.63 Decreased By ▼ -0.07 (-0.06%)
UNITY 13.76 Decreased By ▼ -0.22 (-1.57%)
WTL 1.14 Decreased By ▼ -0.02 (-1.72%)
BR100 4,037 Decreased By -26.9 (-0.66%)
BR30 14,412 Decreased By -56.6 (-0.39%)
KSE100 40,471 Decreased By -262.4 (-0.64%)
KSE30 15,163 Decreased By -67.2 (-0.44%)
Follow us

Pakistan’s leading mobile network operator (MNO) managed to score double-digit increase in key financial indicators in the most recent quarter, despite a challenging operating environment. Based on latest financial results posted by Veon, the parent company of Pakistan Mobile Communications Limited (‘Jazz’), the cellular giant’s total revenues grew by 11 percent year-on-year to reach Rs63.5 billion in 2QCY22, buoyed by continuing strong growth in data revenues driven by a higher tally of 4G subscribers.

At the Apr-Jun quarter end, the largest MNO’s 4G users had crossed 38 million in number, growing by over 24 percent compared to the same period last year. As a result, data revenues jumped 28 percent year-on-year to reach almost Rs27 billion. At this pace, by the last quarter of this year, Jazz data revenues may provide half of overall topline. The operator’s 4G coverage stood at 56 percent of the country as of June end, which was a marginal improvement over June 2021. This could be enhanced.

Overall, the operator’s ARPU (average revenue per user) at Rs253/month in the three-month period was a scant 2 percent improvement over the same period last year. In real terms, after adjusting for inflation, the ARPU growth goes into deep negative. And then on the group level, the view on ARPU (in foreign currency terms) becomes more disappointing considering the fast-declining PKR in recent times. It doesn’t help when taxation-related hikes (mostly, WHT on account recharge) further depress ARPU.

In another positive for Jazz, its EBITDA (earnings before interest, taxes, depreciation and amortization) improved by 20 percent year-on-year to Rs30 billion. This growth was disproportional compared to 11 percent topline increase. As a result, EBITDA margin jumped by over 3 percentage points over 2QCY22 to reach 47 percent in 2QCY22. Veon attributed this growth to one-off adjustmentsof SIM-tax reversal and license renewal charges of Warid paid in 2QCY21. Even after discounting those adjustments, Jazz EBITDA growth was higher than topline, despite massive rise in cost of fuel and utilities.

As per the latest report, Jazz added 400 more 4G sites to its data network in the quarter. But overall, the investments seem to be on a decline, as the first-ranked MNO’s capital expenditures declined by 18 percent year-on-year to reach Rs11 billion in the period under review. Considering the current volatile macroeconomic situation amidst the industry’s longstanding issues, operators may find it prudent to prioritize getting through this turbulent time without significant financial deterioration. Jazz, it appears, is able to achieve that objective better than other operators, thanks to its scale and strategy.


Comments are closed.

Jazz: still singing!

At least five injured in explosion near Quetta Police Lines

Pakistan expresses unflinching support for Kashmiris on Solidarity Day

China's oil demand bounce may push producers to reconsider output: IEA

Foreign authorities seeking properties/bank accounts info: FBR won’t intimate concerned taxpayer about request

Maryam says PTI chief Imran should be thrown out of politics

Qatar sends envoy to Afghan capital to meet with Taliban

Qatar airport aims to beat passenger record

UK's shortest-serving PM Liz Truss blames economic 'orthodoxy' for downfall

Saudi non-oil private sector activity jumps in January on higher output, orders

India to ban Chinese-linked betting and loan lending apps