Telenor international has posted smaller-than-expected drop in first quarter earnings, thanks to gradual recovery of global markets, particularly in Asia.
Telenor posted a total of 10 percent drop in Q1 earnings that fell to 7.17 billion crowns or $ 1.28 billion before cutting interest, tax, depreciation and amortisation (EBITDA).
Analysts had predicted average forecast for Q1 earning at 6.68 billion crowns or $ 1.11 billion.
“Current trends in the Asian and Nordic regions are positive and I am pleased to see that the Telenor Group had a rebound in organic revenue growth,” said Chief Executive Jon Fredrik Baksaas in a statement.
Telenor is planning to cut investment spending this year to help its income.
“In addition, we revise our expected capex to sales ratio slightly downwards, following the development in (Indian unit) Uninor and lower overall investments during the first quarter,” Baksaas added.
Revenues for Telenor Pakistan fell slightly from $ 185.82 million in Q1 2009 to $ 178 million, due to notable devaluation of local currency.
Revenues in local currency increased by 19%, mainly due to a higher subscription base. Revenues in local currency remained at PKR 14.98 billion in Q1 2010 compared to PKR 13. 43 billion during Q1 2009.
ARPU in local currency increased by 1% compared to last year, due to increased average usage, partly offset by reduced average prices. APPM decreased due to reduced interconnect rates from 1 January 2010, market focus on bundling of voice and SMS, in addition to off-peak offers.
Detailed Analytical Data for Telenor Pakistan