PTCL’s Acquisition of Telenor Pakistan Slated for Early 2025 as Financial Performance Soars

According to Telenor Group’s recent Q3 report, the much-anticipated sale of Telenor Pakistan to Pakistan Telecommunications Company Ltd (PTCL) has been rescheduled to finalize in early 2025. It was initially announced in December 2023. However, the transaction’s closure has been awaiting final regulatory approvals since then. Despite these procedural delays, Telenor Pakistan has displayed robust financial performance. The closing transaction for PTCL’s acquisition of Telenor Pakistan will likely take place in early 2025.

For Q3 2024, Telenor Pakistan reported an 8% rise in service revenue, attributed largely to the company’s ongoing monetization strategy. Despite a slight 3% drop in its subscription base, efforts to increase average revenue per user (ARPU) have paid off, with ARPU rising by 11% over the past year. Additionally, operational expenses (Opex) rose at a slower-than-expected rate of 6% due to favorable energy costs and some accrual reversals, helping achieve a 9% EBITDA growth.

The report also acknowledged ongoing political and economic challenges in Pakistan, which can impact overall market stability. Yet, Sigve Brekke, CEO of Telenor Group for Asia, praised Telenor Pakistan’s resilience. He stated:

“I was impressed to see Pakistan back to solid EBITDA growth under tough macro conditions while undergoing a divestment process”.

This acquisition by PTCL, once finalized, will mark a noteworthy shift in Pakistan’s telecom landscape. The delayed transaction date provides both companies an opportunity to facilitate operations and maximize market value. Moreover, it reflects a strategy geared toward long-term, sustainable growth despite volatile conditions.

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