Telenor Pakistan posted revenue growth of 6.1 percent on a year-on-year basis during the third quarter of 2023, taking the revenue to Rs. 28.22 billion compared to revenue of Rs. 26.59 billion posted in the same quarter of 2022.
Telenor Pakistan’s service revenue also jumped from Rs. 21.57 billion in third quarter of 2022 to Rs. 22.48 billion in the third quarter of 2023, registering an increase of Rs. 4.2 percent.
In its third quarter 2023 interim report, Telenor highlighted that Telenor Asia’s organic service revenues improved by 6 percent and EBITDA increased by 4 percent. This performance was driven by mobile ARPU growth in both Bangladesh and Pakistan, more than offsetting the negative impact of inflationary pressure including higher energy prices, it added.
The report further pointed out that In Pakistan, management’s focus remains to manoeuvre the very challenging business and macroeconomic environment by prioritizing value customers, while balancing network quality and by prudent cost management.
Adjusted for the abovementioned special effect in the same period last year, service revenues increased by 4 percent from improved data monetization as well as favorable comparables due to the severe flooding in the same period last year. EBITDA improved by 3 percent as a result of higher service revenues and revenues from incoming international interconnect traffic, more than offsetting the negative impact of higher energy prices, adverse currency movements, and contractual costs increases.
It further said that the macro-economic outlook for Pakistan remains challenging and the entity is still sensitive for impairment. These risks require continuous monitoring and are being closely followed up at both local and Group level.
Sigve Brekke, President & CEO Telenor Group, said that in the third quarter Telenor demonstrated solid growth and earnings momentum in the Nordics, saw firm traction for synergy realisation in Asia, and had continued progress on our portfolio optimisation agendas.
“In conclusion, I am satisfied with the performance in the third quarter and remain optimistic for the future. Customer excellence, free cash flow generation and long-term value creation will remain top priorities for us going forward. I am confident in the business outlook we have presented for the years to come,” Brekke said.
In a statement to Reuters today, Brekke said the company hopes to decide on a strategic solution for its Pakistan business before year-end.
“We are in contact with many parties now, which is why I say I’m rather optimistic that we will by the end of the year have a final solution,” he said.