PTCL management says group revenue remained broadly stagnant quarter-on-quarter despite nearly 2% subscriber growth, as network disruptions in Azad Jammu and Kashmir and Khyber Pakhtunkhwa affected business performance.
Karachi, October 30, 2026: Pakistan Telecommunication Company Limited (PTCL) has estimated approximately Rs1 billion in lost revenue during the third quarter of 2026 due to network closures in Azad Jammu and Kashmir (AJK) and, to a lesser extent, Khyber Pakhtunkhwa (KP).
During a corporate briefing hosted by Arif Habib Limited, PTCL management acknowledged that group revenue remained broadly stagnant quarter-on-quarter (QoQ), despite nearly 2% growth in subscribers.
Management identified network disruptions in AJK as the primary reason for the weak quarterly revenue performance, with closures in KP also contributing to the decline.
The suspension of income at U Bank further affected quarterly revenue, with the impact estimated at approximately Rs600 million. However, management said the development was largely bottom-line neutral because of a corresponding improvement in expected credit loss (ECL) charges.
Despite these challenges, PTCL reported a 61% year-on-year increase in group revenue to Rs103 billion during 3QCY26, primarily reflecting the consolidation of Telenor Pakistan and growth in wireline and wireless businesses. Excluding Telenor Pakistan, revenue growth stood at 8%.
Group EBITDA increased by 77% year-on-year to Rs36 billion.
Wireless business performance
Management disclosed that the combined Ufone and Telenor Pakistan wireless business recorded an average revenue per user (ARPU) of approximately Rs315 as of September 30, 2026.
Combined ARPU increased by around 6% compared with the pre-merger period, with further improvement expected following complete network consolidation.
PTCL is also pursuing network integration through a request for proposals involving network vendors, with full-scale integration and realignment expected to begin in 2027.
Rising costs and investment
Management estimated that the new PTA regulatory charge on international incoming calls resulted in approximately Rs1.2 billion in additional costs during the quarter.
The company also incurred around Rs900 million in consultancy expenses related to the post-merger integration of PTML and Telenor Pakistan.
Group investments reached approximately Rs100 billion during the first nine months of 2026, including spending on 5G spectrum acquisition and network integration. PTCL separately invested Rs25 billion in fibre network expansion.
Management expects these investments to support revenue growth in the coming quarters.