Telenor Reports Single Digit Growth in Revenues, Lower ARPU During Q3 2013

Telenor Pakistan has posted PKR 69.725 billion in revenues for first nine months of on-going fiscal year, up from PKR 66.645 billion during same duration last year.

Currency depreciation, however, resulted into 4 percent Y-o-Y fall in revenues in Norwegian Kroner that stood at NOK 4065 million — for three quarters combined — as compared to NOK 4,232 million during same period last year.

The Telenor Group reported its third quarter financial results during the weekend where it said that Telenor Pakistan, during the reported quarter, showed an operating profit of NOK 282 million, versus an operating loss of NOK 95 million in Q3 2012.

Financial services contributed 2.5 percentage to the total revenue growth.

The EBITDA margin improved by 2 percentage points following higher revenues, savings from energy initiatives and negative one-time effects last year. The impact of introduction of ICH contributed negatively with 3 percentage points.

EBITDA in local currency increased by 12%.

Capital expenditure decreased as the network modernisation was finalised during the quarter, also resulting in reduced accelerated depreciation and improved operating profit

Company said that its ARPU in local currency decreased by 10%, mainly because of fierce on-net competition putting pressure on national interconnect revenues.

ARPU for postpaid users was reported at PKR 686, compared to PKR 190 ARPU for prepaid users.

ARPUs were also impacted by the fact that revenues from incoming international traffic through International Clearing House (ICH) are now accounted under non-mobile revenues and are not added into ARPU levels.

Telenor said that its subscribers increased by 160,000 during the quarter including a downward adjustment of 542,000 subscriptions following data cleaning exercise.

Telenor’s Average traffic minutes per user per month stood at 225.

Telenor Q3 2013


  • omer

    Telenor heavily advertising these days in multan
    “ab ap ke sher multan main naya network wasee coverage ke saath”
    may be this has to do something with their low revenue

  • test

    They have replaced NSN with ZTE the most patheic equipment and they will not produce quality.
    Worst network of Pakistan. Try once Warid you will never switch to any other network. Coverage in rural area is some issue with Warid else its cost effective and super netrwork.

    • Stone

      Honestly, this varies from city to city or even location to location within cities. You cannot say a particular network is pathetic just because of a particular vendor. ZTE is supplying network components to over a 100 companies across the world not to mention China Mobile in China which has by far the biggest mobile subscriber base.

      So this comes down to how the services are in your area or at least how you feel about them and personal preference. As for NSN, I don;t think you are aware that all Pakistani operators ended their agreements with NSN back in March. All employees were told to find jobs within 2 months. That didn;t happen because all of sudden NSN wasn’t good but because they sucked at providing service, they were too expensive, they had a monopoly and pressurized operators.

      • test

        @stone: I have been in Shanghai in 2011, and witnessed that china mobile is using Ericsson in major cities. I have seen in hotel lift China mobile and Ericsson logo for coverage

    • A_Khan

      Hi,
      Just to clarify, Telenor has completed its Network Swap now. Mobilink is in the process of doing so. Their customers will have to go through the same pain that TP customers had to bear for last year.

      Secondly, The vendor itself is not that important in itself. Whats important is the people who are running the network & I have confidence in Telenor People that they can do it. If they can finish Network Swap of this magnitude within a year, they can optimize/resolve network issues as well.

      Thirdly, Even Mobilink is swapping half its network with HUAWEI which is a Chinese vendor. Believe me these days Chinese vendors have progressed much and you can’t rule them out!

      Last but not the least, Marketing people are shouting because Telenor does have most modern All IP network in place, first of its kind in Pakistan.

      • test

        @4b2ff5c0b8bdadf76fbccb2648fef6a3:disqus : Huawei is must better than ZTE and my company used Telenor for two years and we know what is the reality before the swap of equipment.
        Kindly do not try to justify Telenor, believe me its most pathetic network of PK

        • A_Khan

          Who are you kidding dude!

          • test

            @a_khan: I am serious believe me it is really the most pathetic network and expensive.
            Telenor will never be an urban network just because of quality. Else they are investing heavily in marketing why not in quality which need equipment. Its saves money but will not be good in long term basis.

            • RIPTelenor

              Exactly ZTE is not the vendor which can provide quality network to any operator.. Pathetic. Same guys different vedor, Telenor finished…

      • Osama

        salam, brother mai ny 4th november ko sms packgae karwaya tha weekly wala and mai ny aj kuch msgz kye and achanak msg kartay kartay sending failed a gya mai ny apna balance check kia its zero and mery khayal sy abi 1 week nhe hua. aca mery sath pehly b hua tha ar mai ny 200 ka balance urra dia msgz kr kr k jb k mai smjhta raha k mera package hua wa hai… mera khayal hai telenor ko skip kr dena chahie…..

    • A_Khan

      @2170ea4e8172a817cd3f0f618ee4c051:disqus, @72b06804cdf897f7f693d29e077fa6c7:disqus, @324687611b56ad784b1d7cd5dae08f23:disqus, @6d7d6af401e0ef1375784e18598371bc:disqus

  • aaq

    As for as my concern as an ex-employee of TP “ZTE equipment can not perform 80% even i could say it is not perform 50% of its best”. ZTE shows 100% stats but behind the scene is totally different.

  • Bilal

    very impressive, considering currency depreciation pressure would have wiped out atleast 30% – 35% of actual growth. Given the situation showing positive growth in forex is an achievement in itself

    • test

      But this is not long term due to cost cutting you can only survive at max for two years, for quality you have to invest.
      Telenor is not investing in quality product just is on the track of what moblink did about an decade ago, but now situation is different and its competition with MNP is available.
      Telenor will loss market share if country economy improves. Than people will go for quality product

      • omer

        I may disagree here. if ZTE equipment is so bad….why Telenor has used it. I havnt used Telenor these days… but if their network is upgraded as they claim and its still bad as you have concluded on the basis of zte expeience…..Telenor will lose its 2nd position in market share very soon. and the way they are doing marketing in multan they must be mad then

        • test

          @2170ea4e8172a817cd3f0f618ee4c051:disqus: You seems educated person and how you are impressed with marketing. Kindly do your own analysis, and do think how illiterate people’s mind can be changed via marketing.
          Best selling and best product are totally two different things. I not Warid employee but a customer and want to share that Warid have no match in quality in all operators of PK.

          • omer

            @test I agree that warid has best quality as compared to others and the marketing part too

      • bilal

        country economy improves? who are we kidding? :)

  • Ali K

    Telenor has the best HR, in the industry they have the power to build and maintain a great network..it will only improve more with time…… as far as Chinese Vendor is concerned.. Both ZTE and Huawei are getting huge contracts in Europe, The future is Chinese vendors…. how can one buy a product from a company that will one day go bankrupt….look at NSN.. they sold of most of there profile to small companies and soo will Alcatel/Lucent…. Where is Nortal… it was one of the best a few years before.. it has disappeared……The reason china Mobile uses Ericssion is coz the EU will not allow ZTE/Huawei access to European market if China does not give access to there market and to reduce the trade imbalance, which is hugely in favor of the chinese..

  • #RIPTelenor

    Telenor was one of the best network when was operated by NSN. Telenor replaced NSN with ZTE(worst vendor ever), and hence telenor became the worst network in pakistan. don’t worry guys you still have Warid(Best for cities) and mobilink(relatively good for rural).