PTCL Acquisition of Telenor Delayed, Uncertainty Looms Over Telco Merger

Previously, the Group had forecasted the completion of the transaction within the first half of the year. However, the latest report notes,

Obtaining the necessary regulatory approvals for the divestment of Telenor Pakistan has taken more time than anticipated. We continue to engage with the authorities to obtain the approvals.

Despite the delay, Telenor remains optimistic, citing strong merits for all stakeholders involved. The company added that it still expects to secure the required clearances in the coming months.

Telenor Group announced the sale of its Pakistan operations to PTCL in December 2023, marking a major consolidation move in the country’s telecom sector. The transaction remains subject to regulatory approvals and standard closing conditions.

Meanwhile, Telenor Pakistan continues to perform well. The company posted a 14% year-on-year growth in service revenue, driven by its monetisation strategies. Average Revenue Per User (ARPU) rose by 12.5%, even as the subscriber base declined by 3.1%.

Macroeconomic stability in Pakistan, such as easing inflation and lower energy prices, contributed to reduced operational pressure. A reversal of NOK 30 million in personnel provisions further bolstered performance, helping deliver an 18.7% increase in adjusted EBITDA.

Still, the broader economic environment remains challenging. While some indicators have improved, persistent structural weaknesses and political uncertainties continue to pose risks to business operations.

In Asia, Telenor’s organic service revenue grew by 1.3%, largely due to Pakistan’s strong showing, partially offset by a downturn in Bangladesh’s Grameenphone unit.

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