Telenor Posts Flat Revenues During Q1 2013

Telenor-LogoTelenor Pakistan reported flat revenues with marginal increase in revenues during first quarter 2013.

In its group financial report, Telenor said that its Pakistani operations generated Rs. 22.40 billion during first three months of 2013, slightly up from Rs. 21.73 billion it had generated during same duration last year showing a growth of mere 3 percent.

Telenor said that growth in revenues was mainly impacted by regulatory restrictions on sale of new SIMs, price increase of international incoming traffic after implementation of ICH – due to reduced traffic and a noticeable increase in grey traffic – and government forced network suspensions.

Financial report mentioned that ARPU in local currency decreased by 12%, again both as a result of government enforced network outages and the effect from establishment of International Clearing House (ICH) resulting in a large reduction of incoming international traffic.

The EBITDA margin was reduced by 2 percentage points following a reduction in gross margin due to forced industry contribution to implementation of grey traffic monitoring equipment and increased vendor transition costs for operation and maintenance.

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Operating profit was negatively affected by accelerated depreciations of NOK 235 million related to the on-going network modernisation.

Capital expenditure increased during the quarter as a result of good progress on the network modernisation and 1,325 sites were swapped during the quarter. It is expected to be completed towards the end of
2013.

The number of subscriptions increased by 277,000 during the quarter. Telenor said that the regulatory restrictions on SIM sale through retail channels, introduced in December 2012, continue to hamper subscriber growth. However, company is making efforts to strengthen alternative sales channel. At the end of the first quarter, the subscription base was 5% higher than at the end of first quarter last year.

Telenor said that average traffic minutes per subscriber per month stood at 222, down from 238 during same duration last year. Telenor said that it has 332,000 postpaid customers out of its total subscribers base.

Check below the financial highlights from the quarter:

Telenor Revenues

Tech reporter with over 10 years of experience, founder of ProPakistani.PK


  • Moazzam

    Lets not forget:
    poor call quality

    call drops
    weak signals
    receiving of sms after a longgg period, sometime after 24 hrs.
    charging customers extra to provide better services while giving below average service overall.

    I have been proud supporter of Telenor and I aware that Telenor is upgrading its infrastructure for next gen network capabilities. But these things are sooo annoying tht I have shifted to another network till these issue get resolved (which according to Telenor’s representative would take a year)
    Then I will switch back to Telenor again. So bye bye till 2014 from me :@

  • Moazzam

    Lets not forget:
    poor call quality

    call drops
    weak signals
    receiving of sms after a longgg period, sometime after 24 hrs.
    charging customers extra to provide better services while giving below average service overall.

    I have been proud supporter of Telenor and I aware that Telenor is upgrading its infrastructure for next gen network capabilities. But these things are sooo annoying tht I have shifted to another network till these issue get resolved (which according to Telenor’s representative would take a year)
    Then I will switch back to Telenor again. So bye bye till 2014 from me :@

  • Umer Draz

    Moazzam you are from mobilink so stop acting like a goat.

  • Umer Draz

    Moazzam you are from mobilink so stop acting like a goat.

  • test

    Telenor sucks, best operator is Warid in terms of quality. Also there revenue is declining

  • Ali Omer

    Why everyone is missing the fate written on the wall for Telenor after selection of ZTE last year. This so called network modernization project will be history for Telenor
    and we all have already started seeing it. Unfortunately our seeing or comments will not
    help Telenor as company till it’s management is either sleeping or have closed
    their eyes because of unknown reasons.

    I don’t have much experience with Warid but what I have been hearing these days from different people that mobilink is gaining back stability and reliability… question
    remains to be seen how their modernization project goes as it is in the
    pipeline … with another Chinese vendorJ

    • Moazzam

      You are killing my hopes of getting back to telenor :(
      But I guess you are right about this up-gradation (which has started a downgrade session from user’s end)