Telenor Pakistan has announced a year-on-year revenue increase of 6.7% for the third quarter of 2024, reaching Rs. 30.11 billion, up from Rs. 28.2 billion during the same period last year. This growth is notable despite the challenging macroeconomic environment and ongoing divestment processes.
The company reported continued growth in service revenues across Asia, with Telenor Pakistan achieving organic growth of 8%. This increase was largely driven by a successful monetization strategy, even as the subscription base experienced a 3% decline. However, the report cautioned that the current political and economic situation in Pakistan presents risks, including potential civil unrest and financial instability.
The Average Revenue Per User (ARPU) for Telenor Pakistan increased by 11% year-on-year, reflecting effective monetization efforts. Operating expenses (Opex) saw a modest rise of 6%, primarily due to the reversal of energy accruals. Excluding these reversals, the increase in Opex was still lower than trends observed in previous quarters, benefiting from reduced fuel tariffs.
The sale of Telenor Pakistan to Pakistan Telecommunications Company Ltd. was announced in December 2023. Until the necessary approvals for the transaction are obtained, Telenor Pakistan will remain part of the Asia business area. Overall, strong top-line growth, combined with a decrease in inflation and lower Opex due to accrual reversals, led to a robust 9% growth in EBITDA for Telenor Pakistan.
In contrast, total service revenues for the Asia region declined by 1%, as Telenor Pakistan’s growth was offset by a decrease in revenues from Grameenphone in Bangladesh. The EBITDA for the Asia region was similarly affected by this top-line decline, resulting in an organic decrease of 3%.