Despite witnessing a 16% YoY gain in local currency, Jazz had a decrease of 20.4% in their revenue in USD terms in the first quarter of 2023. The depreciation of the PKR by 47% YoY was the main cause of this decrease.
A spike in operating expenses, notably an 8.3 p.p. YoY increase in interest rates, as well as increases of over 80% and 32% YoY in fuel and energy prices, respectively, had an impact on the company’s margins. Despite these obstacles, Jazz spent PKR 3.7 billion in Pakistan in the first quarter of 2023, mostly as part of its “4G for all” strategy, bringing its overall investment to USD 10.4 billion.
Jazz concentrated on growing its 4G network by installing more than 1,000 new 4G locations. As a result, its overall subscriber base climbed to 73.7 million, while its 4G subscriber base increased by 17.4% YoY to 43.1 million.
Aamir Ibrahim, the company’s CEO, highlighted worries about the telecom sector’s financial stability owing to increased operational expenses such gasoline, energy, interest rates, and exchange rates. Despite these challenges, Jazz is nevertheless committed to advancing digital inclusiveness in Pakistan by spending money and expanding its 4G network.
The business has encouraged governments to take action by implementing measures including delinking the spectrum price from the US currency, spreading license payments over 10 yearly installments rather than five, and encouraging controlled inflationary pricing.
