Pakistan Mobile Communications Limited ("the Company" or "PMCL") is a Public Unlisted Company. The head office of the Company is in Islamabad.

PMCL was incorporated in Pakistan in December 1990 as Private Limited Company, and commenced operations in August 1994. In February 2005, the Company changed its status from a Private Limited Company to a Public Limited Company. PMCL was initially also rated by International Rating Agencies due to its foreign debt exposure.

PMCL is the largest cellular telecommunication service provider in the country engaged in the installation, operation and maintenance of a countrywide GSM cellular network under the brand name 'Jazz'.

VEON Ltd. (VEON) owns 100% shareholding of the Company, ~85% of the issued share capital in the Company through wholly owned subsidiary 'International Wireless Communications Pakistan Ltd' (incorporated in Malta) ("IWCPL"), which holds directly and indirectly through Telecom Management Group Limited ("TMGL") and ~15% stake through another wholly owned subsidiary VEON Pakistan Holdings B.V (incorporated in Netherlands) ("VEON Pak"). The ultimate parent Company is VEON Ltd. with its headquarters in Amsterdam, the Netherlands (incorporated in Bermuda) ("VEON"). Both TMGL and VEON Pak are wholly owned subsidiaries of VEON Ltd.

VEON's ownership structure is characterized by stability, supported by the Company's strong financial performance and liquidity management. Over time, VEON has demonstrated resilience in navigating market dynamics, reinforcing investor confidence and sustaining its position within the industry. The ownership framework is expected to remain stable, with clear representation on the governance side, ensuring transparency and strategic decision-making. This stability enables the organization to maintain a long-term vision, fostering sustainable growth while adapting to evolving business landscapes.

VEON operates as a global digital communications Company, offering a diverse range of services under its well-established brands—Banglalink in Bangladesh, Jazz in Pakistan, Kyivstar in Ukraine, and Beeline in Kazakhstan. Through these brands, VEON delivers advanced connectivity solutions, empowering millions of users with reliable telecommunications and digital innovations. The Company demonstrates strong business acumen by making strategic decisions that drive growth and market adaptability. With a focus on innovation and digital inclusion, VEON continuously invests in cutting-edge technologies, ensuring enhanced user experiences and bridging gaps in digital accessibility. By fostering local and international expertise, the organization remains a key player in the evolving digital landscape.

VEON offers a wide range of wireless, fixed, and broadband services to over ~160mln customers in ~6 countries. The group (formerly Vimplecom) has rebranded to VEON by revitalizing its business operations from telecom to wider technology platforms in order to penetrate diversified streams. During CY24, VEON Ltd revenue clocked in at USD 4,004mln and EBITDA stood at USD 1,691mln.

The Company's Board of Directors comprises nine distinguished members, including the Chief Executive Officer. Each member brings extensive experience from diverse industries, contributing valuable insights and leadership to the organization. With a collective wealth of knowledge, the Board plays a crucial role in steering the Company towards its strategic objectives while maintaining strong governance standards. Their expertise ensures informed decision-making, effective oversight, and a long-term vision that drives corporate success and sustainability.

Mr. Muhterem Kaan Terzioglu is the chairman of the board. Prior to joining VEON, Kaan was Turkcell’s CEO from April 2015 until March 2019. In that role, he led the Company's successful digital transformation. Before joining Turkcell, Kaan held global managerial roles at Cisco and Arthur Andersen, working across Europe and the United States. The board comprises highly qualified and experienced professionals holding senior positions in the group Companies.

The Board of Directors plays a pivotal role in shaping the Company’s strategic direction and ensuring alignment with its overarching objectives. Regular board meetings serve as a forum for evaluating management performance, fostering accountability, and driving sustainable growth. Through these sessions, the board provides critical oversight, assesses key financial and operational decisions, and helps steer the Company toward long-term success. Their collective expertise and leadership ensure that strategic goals are effectively pursued while maintaining governance standards and corporate integrity.

PMCL's Auditors, KPMG Taseer Hadi & Co. has expressed an unqualified opinion on the Company’s financial statements for the year ended December 31, 2024. The internal audit function of the Company is in-house and reports directly to the board.

PMCL operates with a well-defined organizational structure that ensures efficiency and clarity in management. Various operational activities are systematically segregated and managed by different specialized departments, allowing for streamlined execution and effective oversight. Each department is led by a dedicated head who is responsible for managing their respective functions. These department heads report directly to the CEO, ensuring alignment with the Company's strategic vision and operational goals. Additionally, they maintain accountability to their respective counterparts at VEON, fostering consistency and collaboration at the corporate level. This structured approach enhances operational efficiency, strengthens decision-making, and supports the Company's ability to adapt to industry demands while maintaining strategic alignment with VEON’s overarching objectives.

Mr. Aamir Ibrahim, the CEO, brings a wealth of experience spanning over two decades across leading companies, industries, and international markets. His expertise, particularly in the telecom sector, positions him as a visionary leader driving strategic growth and innovation within the organization. Alongside him, Mr. Farrukh Khan, the CFO, adds immense financial acumen, backed by over three decades of experience in esteemed financial institutions. His deep knowledge in mergers and public offerings strengthens Jazz's financial strategy, fostering stability and forward-looking innovation. Together, their leadership ensures a dynamic and resilient corporate direction, empowering the Company to navigate industry challenges while pursuing sustainable growth.

PMCL’s top management is composed of highly qualified professionals with prestigious educational backgrounds from distinguished local and international institutions. Their expertise is further enriched by diverse experience, both within the country and abroad, enabling them to bring global best practices and strategic insights into the organization. The Company follows a structured reporting hierarchy, with the Chief holding the highest leadership position, overseeing strategic operations and decision-making. Directly under the Chief is the Vice President, followed by Directors and Senior Managers who manage departmental functions and execution. Below them, are Managers and Associates, who contribute to operational processes and ensure smooth business execution across different levels. This well-defined structure enables efficient communication, accountability, and strategic alignment across the organization, fostering a cohesive and results-driven corporate environment.

The Company utilizes an Oracle-based Enterprise Resource Planning (ERP) system, comprising various integrated modules that seamlessly connect all back-end departments. This comprehensive integration ensures smooth data flow, enhances operational efficiency, and enables real-time insights across the organization. By leveraging Oracle’s robust ERP solution, the Company benefits from streamlined processes, improved decision-making, and a cohesive digital infrastructure that supports business growth and agility.

The Company has established strong systems and controls & continuously improving under the guidance of VEON. As VEON is listed on New York Stock Exchange (NYSE) and Companies listed on the New York Stock Exchange (NYSE) are generally required to comply with the Sarbanes-Oxley Act (SOX) and must establish and maintain effective internal controls over financial reporting, have independent audit committees, and comply with various reporting and disclosure requirements outlined by SOX . Report generation has been optimized to bring efficiency. Furthermore, the group has been directed to bring PMCL under the global reporting system (GRS) which will be centralized at VEON. The management of PMCL reports at the Group level on a monthly basis via presentations on performance and key KPIs.

The telecom industry in Pakistan is undergoing substantial developments, marked by regulatory updates. A surge in mobile data usage has driven major operators such as Jazz, Telenor, Zong, and Ufone to invest in infrastructure. There is also an emphasis on financial inclusion through mobile wallets and banking services. According to the latest statistics from the Pakistan Telecommunication Authority (PTA), the telecom industry recorded ~17% revenue growth, reaching PKR ~955.2bln in CY24. This growth was primarily driven by the expansion of 3G and 4G services. Out of the total, the cellular mobile operators (CMO) contributed ~PKR 629.2bln. The country's total number of cellular subscribers reached to ~197mln users by March 25 (penetration of ~80.3% of the total market) while 3G/4G subscribers reached to ~143mln users (penetration of ~58.31%). The rate of growth in 3G/4G subscribers has been impressive in the last few years.

The Company relishes on a share of ~37% in market cellular subscribers followed by Zong which has a ~26% market share, Telenor with a ~23% market share, and Ufone has a ~14% of market share respectively. Jazz maintains its position as the market leader, holding ~37% share of the cellular market in terms of total subscribers. However, subscriber growth remained constrained, with the reported ~71.3mln subscribers as of CY24, unchanged from CY23. Jazz leads the market in terms of 3G/4G subscribers, Jazz 4G subscribers stood at ~53.3mln by the end of March-25. Jazz aims to evolve from a mobile telecommunications operator to a dynamic service Company, focusing on leveraging its strengths in data and connectivity. The Company plans to disrupt multiple sectors such as financial services, software development, data centers and cloud solutions, and entertainment. With a projected compound annual growth rate (CAGR) of over 20%, Jazz intends to double its revenue by 2027. Key contributions to this growth are expected from its new ventures, including the fintech platform JazzCash, the cloud service Garaj, and the digital streaming service Tamasha. In CY24, Jazz invested an impressive PKR 53.9bn, marking a ~46.2% increase compared to the previous year. This investment focused on expanding the reach and quality of 4G services, ensuring broader connectivity across Pakistan. The integration of AI solutions further strengthened Jazz's efforts to provide cutting-edge services.

During CY24, PMCL’s revenue surged by ~14% to PKR ~281,214mln on YOY basis (CY23: PKR~246,449mln), driven by higher prices and increased sales. Company reported a net profit of PKR ~43bln during CY24 (CY23: PKR ~4.6bln), a significant improvement in the review period. This remarkable turnaround underscores the Company's strong performance during the review period.

The Company achieved a remarkable enhancement in its net margin during CY24, rising to ~15.3% from a modest ~1.9% in CY23. This substantial improvement was primarily attributed to an increase in Average Revenue Per User (ARPU), which played a pivotal role in driving profitability. The growth in ARPU not only strengthened net margins but also contributed to improved performance across all levels, highlighting the effectiveness of the Company's strategic initiatives in optimizing its revenue streams. In terms of ARPUs, the average voice ARPU was recorded at PKR ~67 per user in CY24 (CY23 PKR ~66), average data ARPUs recorded at PKR ~236 per user in CY24 (CY23: ~200).

In January 2020, Jazz achieved a significant milestone by successfully testing fifth-generation (5G) mobile technology at its Digital Headquarters in Islamabad. Looking ahead, the Company is committed to bolstering its position as the leading cellular provider in the market. Its strategy will focus on enhancing profitability margins through effective data monetization. Additionally, PMCL, leveraging its association with Mobilink Microfinance Bank, aims to establish a robust digital platform to drive innovation and growth.

The Company's operations are fundamentally cash-driven, as evidenced by its robust EBITDA to sales ratio. As of CY24, this ratio stood at ~43%, demonstrating consistent efficiency in converting revenue into earnings before interest, taxes, depreciation, and amortization (EBITDA). Though ~44% ratio recorded in CY23, which highlights the Company's ability to maintain a strong cash-generating capacity, even amidst potential market challenges or changes in operating conditions. This cash-centric model provides the Company with significant financial flexibility, enabling it to reinvest in growth opportunities and manage debt obligations effectively.

In CY24, the Company demonstrated a strong financial performance, as evident from its free cash flow from operations (FCFO). The FCFO amounted to PKR 84,830mln, marking an impressive year-on-year growth compared to the PKR 73,633mln recorded in CY23. This substantial increase underscores the Company's ability to efficiently manage its operational cash flows, reflecting resilience and effective financial strategies amidst the evolving business environment. The growth in FCFO highlights the Company's capability to generate liquidity, which can be reinvested into its core operations.

As of CY24, the Company's debt portfolio consisted of a mix blend of short-term and long-term borrowings. The leveraging increased to ~69% (CY23: 53%) primarily due to license fee payments and capital expenditure requirements and inclusion of short term debt towards the end of year at sub KIBOR rate. PMCL achieved a major milestone by securing the largest long-term syndicated credit facility in the private sector, valued at PKR ~75bn. This remarkable financial undertaking was aimed at advancing the telecom and digital infrastructure across Pakistan.