Decline in Telenor Pakistan ARPU in 2nd Quarter 2009- EBITDA, Revenue Increased

, Posted by Umer Kayani

Fri, Jul 24, 2009

A decline in Average Return per User/Unit (ARPU) of Telenor Pakistan is seen in the second quarter of 2009 but Revenues and Earnings before Income Tax are increased. Number of users is increased by 311000 to 908,000 last quarter from 597,000 last year. But the ARPU is decreased to Rs. 235 in the second quarter as compared to Rs. 248 during last year second quarter.

As the number of subscribers in increased, there is an increase of 7% in total revenues. Higher the revenues higher is the Earning before Income , Tax , Depreciation , Amortization (EBITDA) i.e. 19% increase. The 2^nd quarter EBITDA of Telenor is reported 23% which is the highest quarterly EBITDA so far. Capital Expenditure decreased due to less investment for network expansion.

Telenor Pakistan Official Press Release

Read below the official press release of Telenor Pakistan regarding the 2^nd Quarter Result

Telenor Pakistan posts strong results for Q2 2009

Islamabad (Thursday, July 23, 2009): Telenor Pakistan has posted strong results for Q2’09, growing its Q-o-Q revenues by 8% and netting 908k subscribers compared to 597k in the previous quarter.
The Q-o-Q subscriber growth of 52% has come at a time of significant industry competition and market challenges. With approximately 20.9 million subscribers at the end of Q2’09, Telenor Pakistan has exceeded industry average growth and strengthened its No.2 market share position. Quarterly growth of 19% in EBITDA in the second quarter signifies the success of the company in enhancing its operational efficiency even as the industry struggles with high costs of doing business in the local market.
Executive Vice President and Head of the Telenor Asia Operations, Sigve Brekke expressed his confidence in how Telenor Pakistan was growing in the face of economic challenges in the market: Brekke said, “We are very pleased to see that the Telenor Group companies in Asia deliver good results even in tough times. The second quarter figures re-confirm the importance of this region in Telenor, and we are excited about continuing to be a part of the development of the mobile industry in Asia. We are committed to Telenor Pakistan, and we are impressed with the effort our colleagues in Pakistan have shown in delivering good results.”
Telenor Pakistan’s CEO, Jon Eddy Abdullah, praised Telenor Pakistan employees for the continued success of the company. “The credit goes to our employees, who have responded to the changing dynamics of the market, managed risks and opportunities well, and committed to a constructive process of change. It is because of them that today, we have a network, a brand, and a culture that are healthier than ever. I believe Telenor Pakistan is well-positioned to realize new business opportunities in the market in line with our long-term commitment to Pakistan, ” Jon said.

At the end of Q2’09, the Telenor Group reported improved performance, record high operating cash flow, and total subscriptions of 168 million worldwide.