Telenor Pakistan posted its total revenues of Rs. 23.14 billion (or NOK 1340 million) for fourth quarter of 2013, down from NOK 1,421 million during the same duration last year.
Total revenues in local currency declined by 1%, mainly due to price erosion from low priced on-net offers and negative contribution from ICH of 3 percentage points.
Telenor Pakistan’s revenues from subscriptions and traffic stood at Rs. 17.02 billion during the quarter ended December 31st, 2014, while non-mobile revenues during the report period were recorded at Rs. 4.27 billion.
The EBITDA margin decreased by 8 percentage points primarily coming from increased commissions as last year was affected by the government directed SIM sale restrictions and increased push on Easypaisa services this quarter.
Operating profit improved by Rs. 5.82 billion (NOK 337 million) as accelerated depreciations were reduced following the completion of network modernisation.
Capital expenditure decreased after the successful completion of network modernisation and was focused towards network optimisation and swapping of billing platform.
ARPU in local currency decreased by 8% and reached Rs. 189, down from Rs. 208 during same period last year, mainly due to increased focus on on-net offers accompanied by the decrease in interconnect ARPU due to shifting of revenues from incoming international traffic through International Clearing House (ICH) to non-mobile revenues and declining levels of domestic interconnect traffic.
Average monthly minutes per user increased from 217 during Q4 2012 to 245 during Q4 2013.
While Pakistan’s mobile industry has grown by leaps & bounds over last few years, the growth has been largely self-driven as people came in droves to gain access to mobile communication. Now comes the hard part —- growing subscribers, revenue & EBITDA in an environment of stiff competition, falling tariffs, low ARPU and rising taxes & Opex. Imminent investments in 3G license, network upgrade & introduction of data services will further strain the operators, and none of them seem to be prepared for the challenge. What is required is a sound strategy, a will to execute and a change of old guard by inducting fresh & experienced talent at the leadership level. At the end of the day, its people who run a business.
mubarak ho
Now explains why they want to exit ICH. Makes perfect sense. Their LDI revenues because of ICH has come down. Telenor is rightfully requesting MTR charges from ICH.
with their pathetic service , that also in Islamabad, do they hope to earn profits?? lol , ZTE swap was a BIIIIGGGG mistake and now they have realized it ….