PACRA Maintains Entity Ratings of JazzWorld Pakistan Limited (formerly Pakistan Mobile Communications Ltd).

JazzWorld Pakistan Limited ("JazzWorld" or "the Company"), formerly Pakistan Mobile Communications Limited, is Pakistan's largest cellular mobile operator with an expanding digital services portfolio. The assigned ratings reflect the Company's sound business profile, characterized by market leadership, a growing digital ecosystem, and consistent capacity investment. Sponsor support from VEON Ltd., which remains committed to Pakistan's digital infrastructure development, provides further rating comfort. During the review period, the Company secured the highest 190 MHz of spectrum in the Pakistan Telecommunication Authority's (PTA) Next Generation Mobile Services auction held in March 2026. A phased 5G rollout is planned upon formal license execution, with initial deployment targeting major urban centers and progressive nationwide expansion thereafter. The Company also expanded its active 4G cell sites to 17,400 from 16,000 in the prior year, reinforcing network coverage and quality across Pakistan. Pakistan's telecom sector provides a supportive operating backdrop, with total mobile subscribers reaching ~205mln and teledensity at ~81.6%. Demand for mobile data, digital content streaming, and value-added services continues to grow, supporting industry revenue momentum. JazzWorld maintains its market leadership position with ~36.6% subscriber share, serving ~75mln cellular subscribers, and leads the 4G segment with ~57 million users. Top-line growth of ~17% in CY25 was supported by a commensurate improvement in Average Revenue Per User (ARPU), driven by repricing initiatives and growing data monetization. The completion of the tower monetization transaction with Engro and the JazzCash carve-out under group control reflect proactive portfolio rationalization and improved operational flexibility. However, net margins were impacted by a non-recurring tax charge during the period, the underlying operational performance remained stable. The Company's digital ecosystem continued to scale across platforms. Tamasha and Simosa recorded ~17.5mln and ~24.1mln monthly active users respectively, while Garaj continued expanding within the enterprise cloud and cybersecurity segment. The Company's financial risk profile remains adequate. Cash flow generation is comfortable, with operating cash flows supporting debt service coverage and capital investment requirements. Coverage indicators are maintained at adequate levels. The Company executed a PKR 75bn interest rate swap with a leading commercial bank, converting floating-rate obligations into fixed-rate commitments and strengthening cash flow predictability in a changing interest rate environment. The capital structure is leveraged, increasing to ~72% in CY25 from ~69% in CY24, primarily driven by long-term borrowing requirements associated with license payments and capital expenditure. Borrowings remain predominantly long-term in nature. Looking ahead, progressive data monetization, deepening digital adoption, and the phased 5G rollout are expected to support sustained revenue growth.
The ratings are dependent upon the Company’s ability to sustain its leading market position, maintain consistent revenue growth, and preserve improvement in profitability and overall financial profile. As the capital structure continues to reflect higher leverage, adherence to prudent financial discipline and maintenance of adequate coverage indicators remain important.

About the Entity
JazzWorld Pakistan Limited – brand name ‘Jazz’ commenced its operations in August 1994. The Company is a subsidiary of International Wireless Communications Pakistan Limited, which holds ~85% of the issued share capital in the Company. VEON Pakistan Holdings B.V holds ~15% of the issued share capital in the Company. The ultimate parent Company is VEON Ltd. VEON provides essential communications and digital services to ~160mln customers in Six of the world’s most dynamic countries. The Company's Board of Directors (BoD) is mainly composed of representatives from VEON. Mr. Aamir Ibrahim, the CEO, has over two decades of experience in the local and international markets.