Mobilink Reports 10% Decline in Revenues During Q1 2014

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Mobilink reported Rs. 26 billion (or US 251 million dollars) operating revenues during its first quarter of 2014, down from Rs. 28.5 billion (or US 271 million) it had generated during the same duration last year.

Despite an addition of around a million customers during the year, Mobilink registered 10 percent decline in revenues during Q1 2014 when compared to the same quarter last year. This is first time in history that company posted negative growth in its revenue.

Company said that revenue decline is mainly driven by notable depreciation of local currency. Experts say that revenues were mainly hit due to increased competition in local market for on-net tariffs and bundled plans.

The EBITDA margin declined 10 percent to stand at 39.5 percent as the revenues declined during the quarter along with added operating expense due to network modernization project.

Company said that its ARPU declined to Rs. 216 per user month during the reported duration, down from Rs. 249 per user per month during same time period last year.

Average minutes consumed per user per month stood at 213, down from 233 per user per month during Q1 2014, hinting that company is facing severe competition from market.

Mobilink said that it generated Rs. 1 billion from data services, up from Rs 0.8 billion it had generated in Q1 2013.

Mobilink said that it had 38.16 million customers at the end of March 2014.

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