Telenor Pakistan reported a 6.7 percent increase in revenue on a year-on-year basis for the third quarter of 2024, reaching Rs. 30.11 billion compared to Rs. 28.2 billion in the same period last year. This growth comes as the company navigates challenging macroeconomic conditions and a divestment process.
In its Q3 2024 report, Telenor highlighted continued growth in service revenues in Asia, with Telenor Pakistan achieving an 8 percent organic growth. This was primarily driven by a successful monetization strategy, which offset a 3 percent decrease in the subscription base.
Despite the political and economic challenges in Pakistan, which pose risks of civil unrest, security concerns, and financial instability, Telenor Pakistan managed to increase its average revenue per user (ARPU) by 11 percent year-over-year, thanks to its monetization efforts. Operating expenses rose by 6 percent, less than anticipated, mainly due to the reversal of energy accruals.
The sale of Telenor Pakistan to Pakistan Telecommunications Company Ltd. was announced in December 2023. Until the transaction receives the necessary approvals, Telenor Pakistan remains part of Telenor’s business area in Asia.
Excluding the effects of accrual reversals, the increase in operating expenses was still lower than in previous quarters, largely due to reduced fuel tariffs. This, combined with solid top-line growth and a lower inflation rate, resulted in a robust 9 percent EBITDA growth for Telenor Pakistan.
Overall, total service revenues for Telenor in Asia declined by 1 percent, as growth in Telenor Pakistan was offset by a decline in Grameenphone (Bangladesh). The EBITDA for Asia was also impacted by this top-line decline, leading to an organic decrease of 3 percent.
