- The number of subscriptions increased by 908,000 during the quarter, compared to 597,000 subscribers last year, mainly due to reduced churn resulting from competitive offerings and successful churn reduction activities.
- However, Telenor’s ARPU saw a decline and stood at Rs. 235 compared to Rs. 248 during same period, last year. This decrease in ARPU (that’s as high as 7 percent), is said to be due to decline mobile tariffs following intense competition in Pakistan.
- Total revenues increased by 7% as a result of a subscription growth.
- EBITDA increased by 19% mainly due to higher revenues.
- In the second quarter Telenor Pakistan reported the highest quarterly EBITDA margin so far, of 23%.
- Capital expenditure continued to decrease and hit the lowest level in recent quarters, due to decreased investments for network expansion, to lower growth in subscriptions and traffic volumes.
- Telenor Group showcased decreased profits due to heavy impairment losses of on goodwill in Telenor Serbia.
Note: Currency values used above are: NOK 1 = PKR 13.0868 (As per Yahoo Currency Converter for July 23rd)
Following are Detailed Financial Stats about Telenor Pakistan for Second Quarter, 2009.
Click on Above Images to View Full Size
Below is Telenor Pakistan’s official Press Release regarding Q2 2009 results
Telenor Pakistan has posted strong results for Q2’09, growing its Q-o-Q revenues by 8% and netting 908k subscribers compared to 597k in the previous quarter.
The Q-o-Q subscriber growth of 52% has come at a time of significant industry competition and market challenges. With approximately 20.9 million subscribers at the end of Q2’09, Telenor Pakistan has exceeded industry average growth and strengthened its No.2 market share position. Quarterly growth of 19% in EBITDA in the second quarter signifies the success of the company in enhancing its operational efficiency even as the industry struggles with high costs of doing business in the local market.
Executive Vice President and Head of the Telenor Asia Operations, Sigve Brekke expressed his confidence in how Telenor Pakistan was growing in the face of economic challenges in the market: Brekke said, “We are very pleased to see that the Telenor Group companies in Asia deliver good results even in tough times. The second quarter figures re-confirm the importance of this region in Telenor, and we are excited about continuing to be a part of the development of the mobile industry in Asia. We are committed to Telenor Pakistan, and we are impressed with the effort our colleagues in Pakistan have shown in delivering good results.”
Telenor Pakistan’s CEO, Jon Eddy Abdullah, praised Telenor Pakistan employees for the continued success of the company. “The credit goes to our employees, who have responded to the changing dynamics of the market, managed risks and opportunities well, and committed to a constructive process of change. It is because of them that today, we have a network, a brand, and a culture that are healthier than ever. I believe Telenor Pakistan is well-positioned to realize new business opportunities in the market in line with our long-term commitment to Pakistan, ” Jon said.
At the end of Q2’09, the Telenor Group reported improved performance, record high operating cash flow, and total subscriptions of 168 million worldwide.
For General Readers I would Translate:-
ARPU :- Average revenue per user/ unit ( this means telenor has slight decline in its average revenue which Pakistani users are giving it ,
Note :- This is not due to less use this year, But More use with Less Price this year , due to competition.
EBITDA :- Earning before income , tax , depreciation , amortization :- it means that telenor have to pay all these then it will be Net profit.
Loss is Also mentioned there which is about 54 Nok Millions ( PKR 706 millions approx)
Loss is due to operations , sometimes selling less than the cost or other operational activities.
Revenue total : PKR 14716 Millions approx
After paying all the taxes , detecting depriciation of assests , let say about 40 % I am taking average .. it may be high , so 40 % less would be…
About PKR 8890 Net Profit ( Huge Amount ) PKR 8.9 Billion
…and they still want to sell their business in Pakistan
Sure Indian Market is Worth 100 Billion Approx , Reliance India , Makes about 400 billion approx a year, So Why Not.
Telenor can expect such profits from the present stats but i don’t think it will get such kind of profit in india. Reliance, Airtel,Idea & others present operators have solid positions. So telenor have to compete present as well as new operators(NTT DOCOMO, Etisiat etc). So definately it have to offer more with no interconnect or roaming charges. So let’s seewhat happens………
how come,after so many years in operation and huge advertising telenor has only 117,000 postpaid(persona) customers? this is an extremely low figure for such a big company and such a big market?
When Telenor was launched their primary focus was in the pre-paid market, I guess this is the reason.
But now as I can see they are aggressively marketing their post-paid persona brand.
Lets see, what happens.
Here is a poll on Telecom Tiger india that can be used as evidence to my views above.
Question: Is the dream run for incumbent operators gradually fading in wake of increasing competition?
Results so far
POLL RESULT
Yes 70%
No 15%
Can’t Say 15%
So Telenor should be more careful and not relay only on presen states. Ye na ho k India se bhi kuch na mile aur Pakistan bhi hath se jai……..
telenor needs work more inorderto increase customers