During the second quarter of 2023, Telenor Pakistan exhibited remarkable growth, reporting a double-digit revenue increase of 10% which amounted to Rs. 29.4 billion, compared to the Rs. 26.7 billion recorded in the same period the previous year. This growth was largely attributed to a 4% increase in Telenor’s service revenue, driven by improved data monetization. However, the company faced a setback as its revenues were negatively impacted by a decrease in the subscription base compared to the previous year.
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Despite the challenges, Telenor Pakistan managed to achieve an 8% improvement in Earnings before interest, taxes, depreciation, and amortization (EBITDA), thanks to higher service revenues and increased revenues from incoming international interconnect traffic.
Another significant highlight was the surge in Telenor’s wholesale and other mobile revenues, which reached Rs. 6.16 billion during the second quarter of 2023, showing a notable increase from the Rs. 4.22 billion recorded during the same quarter the year before. However, the company faced headwinds, grappling with higher energy prices, adverse currency movements, and escalated contractual costs. These challenges led to an increase in operating expenses, which stood at Rs. 12.47 billion during the reported quarter, compared to Rs. 10.99 billion during the same period last year.
Sigve Brekke, the CEO of Telenor Group, commended Telenor Pakistan’s impressive accomplishments, especially considering the tough market conditions and inflation in the country. However, despite the positive results, the macro-economic outlook for Pakistan remains demanding, and Telenor Pakistan remains vigilant about potential impairments, as stated in their quarterly earnings report.
In conclusion, Telenor Pakistan’s second-quarter performance demonstrated resilience and adaptability, as evidenced by the impressive revenue growth and improved EBITDA figures. The company’s focus on data monetization and incoming international interconnect traffic played a significant role in boosting service revenue. However, the challenges posed by declining subscription base, higher costs, and macro-economic uncertainties remain key areas to address for sustaining growth and navigating the complex market landscape. Telenor Pakistan continues to strive for excellence and looks forward to further contributing to the nation’s telecommunications sector despite the prevailing economic conditions.
