Jazz Posts Whopping 22% Revenue Growth During 2019

Jazz, Pakistan’s largest mobile phone operator, has posted Rs. 101.7 billion in revenue for the first half of 2019, up by 22% from Rs. 82.4 billion during the same period last year.

In the second quarter, the company posted Rs. 51.1 billion in total revenues, showing a 20.5% YoY growth when compared with the same duration last year.

The company said that massive growth in revenue was due to good operational execution as well as higher usage by customers following the suspension of taxes. Excluding the impact of the suspension of taxes collected, revenue growth was 15%.

The quarterly earning report said that the company achieved 58.8% growth in data revenues, reaching Rs. 12.5 billion during Q2 2019, up from Rs. 7.9 billion during the same period last year.

Jazz said that the data revenue growth was driven by an increase in data customers, doubling of data usage through higher bundle penetration and continued data network expansion.

Financial services revenue grew this quarter by 36% year on year as Jazz Cash increased its 30-day active wallet subscriber base to 5.7 million with revenue of PKR 1.9 billion, a sequential increase of 7.7% from the first quarter of this year.

Growth Contributors:

Despite the ongoing competitive nature of the Pakistani market, particularly in data and social network offers, Jazz continued to grow its revenues, mainly due to a 21.1% increase in service revenues. Following segments contributed to the accumulated growth of the company:

• Data revenues increased by 58.8% YoY
• Voice and VAS revenues increased by 17% YoY
• Financial Services revenue increased by 36% YoY

Company’s capex (excluding license fee) increased 45%  YoY and reached Rs. 9.7 billion, mainly due to increased network roll-outs and the adverse impact of the exchange rate.

The customer base increased by 7.2% year on year, supported by higher data customers on the back of the continued expansion of the data network.

The company said that it offers data coverage in more than 225 cities (defined as cities with at least three base stations).

Some More Numbers:

• ARPU: Rs. 268
• Average Minutes Consumed per User Per Month: 520
• Average Data Consumed per User Per Month: 1,669 MBs

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