PACRA Maintains Entity Ratings of Pakistan Mobile Communications Limited - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- November 11, 2019 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

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The ratings incorporate a robust business profile of the company, represented by its leading market share of ~37% with ~59 million cellular subscribers as at End-Sep'19. This strong share has been achieved with both organic and inorganic growth. The company enjoys synergies related to operational and technical networks, reflected into better earnings for the merged entity. Optimizing on its single brand "Jazz", the company commands solid volumes and strong margins. Additionally, in collaboration with Mobilink Microfinance Bank, an associated entity, the company is establishing a strong digital banking platform.

Overall market dimensions remain positive with respect to mobile data services, as penetration level in 3G/4G subscribers stands at ~34% as at End-Sep'19, depicting sufficient room for growth. The re-imposition of tax on mobile services (May'19 onwards) will normalize the revenue level going forward. The company's financial risk profile exhibits a strong outlook demonstrated by prudent working capital strategies, comfortable coverages and...