PACRA Upgrades Entity Rating of Trans World Enterprise Services (Pvt.) Limited

Trans World Enterprise Services (Pvt.) Limited (hereafter “the Company” or “TES”) continues to strengthen its business profile and competitive positioning in Pakistan's fixed broadband and Fiber-to-the-Home (FTTH) sector. TES specializes in providing reliable internet connectivity through a scalable FTTH network, complemented by TruTV™ and Voice services, consolidating its positioning as a multi-service residential connectivity provider. The rating upgrade reflects the Company's strengthening position as an emerging player in Pakistan's telecommunications sector, supported by the strategic comfort derived from its association with Trans World Associates (TWA), whose established sponsorship bolsters the Company’s strategic initiatives. It is further underpinned by a clear strategic vision, continued network expansion, and a strong focus on customer experience, collectively reinforcing the Company's trajectory toward sustainable long-term growth. In an increasingly technology-driven environment, reliable connectivity and service quality remain critical differentiators for customer acquisition and retention. The Company has steadily expanded its footprint across Lahore, Karachi, and Islamabad, while maintaining an average household penetration rate of 23% within its active coverage areas. As per the latest Pakistan Telecommunication Authority (PTA) data, TES ranked sixth in Pakistan’s FTTH segment by active subscribers as of December 2025, with a market share of 3.8%. The Company’s market standing is further reinforced by independent industry assessments, including Ookla Speedtest rankings, which consistently place Transworld among the leading fixed internet service providers in Pakistan across key network performance and customer experience indicators. The strengthening business profile is reflected in the Company’s financial performance. During CY25, the Company’s topline reached PKR 5,674mln, registering growth of ~28.2% over CY24 (PKR 4,428mln; CY23: PKR 3,639mln), primarily driven by the expansion of house passes and the subscriber base. Gross margins recovered, operating profitability improved, and the Company returned to profitability in CY25, reporting a net profit of PKR 314mln compared to a net loss of PKR 7mln in CY24. Going forward, TES’s growth trajectory is expected to remain supported by Pakistan’s significant untapped FTTH market potential, as reflected in the country’s low fixed broadband penetration and disproportionately high mobile-to-fixed broadband subscriber ratio. The Company is well-positioned to capitalize on this opportunity through continued geographic expansion and network densification across its existing service areas, supporting further subscriber growth and market penetration. From a governance perspective, strategic oversight is exercised through the parent company’s Board. The Company benefits from an experienced management team, robust MIS and internal control systems, and an established internal audit function, collectively supporting operational discipline and effective execution of its growth strategy. The financial risk profile of the Company is characterized by adequate coverages and cash flows.
The ratings remain contingent upon the Company’s ability to sustain the improvement in its business profile, particularly through continued growth in revenues, profitability, and market share. At the same time, the Company is expected to maintain adequate cash flow generation, comfortable coverage metrics, and prudent leverage management, while broadly aligning with the financial parameters outlined in the shared projections.

About the Entity
TES was incorporated as a private limited company in Pakistan on 28 February 2011 under the Companies Ordinance, 1984. TES is a wholly-owned subsidiary of TWA. Mr. Junaid Iqbal Khan is the CEO, Mr. Saad Muzaffar Waraich is the President, Mr. Aasif Inam is the Deputy CEO/Chief Operating Officer (COO), and Mr. Naveed Ahmed Malik is the Executive Vice President, Finance of the Company.