- 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.
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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.