Telenor Pakistan’s Revenue Grows by 6.7% to Rs. 30.11 Billion in Q3 2024
Telenor Pakistan reported a revenue increase of 6.7% year-on-year during the third quarter of 2024, reaching Rs. 30.11 billion compared to Rs. 28.2 billion in the same quarter of 2023.
The company has shown a return to solid EBITDA growth amid challenging macroeconomic conditions while navigating a divestment process during Q3 2024.
In its quarterly report, Telenor highlighted that the service revenues in Asia, particularly for Telenor Pakistan, continued to grow with an organic growth rate of 8%. This growth was largely driven by a monetization strategy, which helped offset a 3% decline in the subscription base.
Challenges Ahead
The report also indicated that the political and economic landscape in Pakistan poses risks of civil unrest, security concerns, and financial instability.
Telenor Pakistan’s average revenue per user (ARPU) increased by 11% year-over-year, primarily due to successful monetization efforts. Operating expenses (Opex) rose less than anticipated at 6%, primarily because of the reversal of energy accruals.
The sale of Telenor Pakistan to Pakistan Telecommunications Company Ltd. was announced in December 2023, and Telenor Pakistan remains a part of the business area Asia until the necessary approvals are secured to complete the transaction.
Excluding the impacts of accrual reversals, the increase in Opex remains lower compared to trends observed in previous quarters this year, mainly thanks to reduced fuel tariffs. The combination of strong top-line growth, a lower inflation rate, and accrual reversals led to a solid 9% EBITDA growth for Telenor Pakistan.
While total service revenues for Asia declined by 1%, the growth in Telenor Pakistan was not sufficient to counterbalance the decline in Grameenphone (Bangladesh). Consequently, EBITDA for Asia also faced pressure, resulting in an organic decline of 3%.
