Report: Growth in Revenues is Likely to Enhance Earning of Telecom Operators

A profit of $32.5 million has been sent by Telecom operators and Internet broadband companies to their native lands in the first four months of financial year 2015-16 with a double-digit increase of 26%.

The State Bank of Pakistan (SBP) statistics revealed that cellular phone operators having foreign ownership and shareholding saw massive growth to repatriate revenue in the four months from Jul-Oct 2015. The disbursements of expulsion redirected the profit earning drive of the cellular mobile operators, which also perceived growth in the third quarter of 2015 mostly on data services and mobile financial services.

Growth in Revenues is Likely to Enhance Earning of Telecom Operators

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As a result operators average revenues per unit (ARPU) also augmented from the preceding year, presenting an encouraging situation for foreign investors who invested millions of dollars in the Pakistani market.

The revenue-earning condition has been stated previously, as Mobilink and Telenor recorded growth of 7 and 10% respectively. Their ARPU also raised to Rs 230 (17% up) and Rs 214 (20% up) correspondingly with noticeable progression from the previous year. The growth was mostly because of the constant surge in the data services after the introduction of 3G services on their networks. Mobilink and Telenor’s joint share in overall subscribers base stands at 70 million out of 122 million, while their subscribers using 3G service amplified to 11.8 million out of 20 million users of 3G/4G technologies. Therefore their financial numbers mostly paint the overall state of economy of the telecom sector.

Formerly the repatriation of disbursements of the telecom sector mounted at $23.9 million in the similar period of 2014, though it closed the financial year of 2014-15 with exceptional figures of $254 million. The noteworthy growth in dividends repatriation was perceived due to handsome incursions of FDI in this specific sector.

Latest report by the central bank indicated that telecom revenues during Jul-Sep 2015 stood at Rs 102 billion, decreased by 12% from Rs 115 billion a quarter ago. The decline in revenues is ascribed due to Rs 370 million losses of PTCL, which has been belligerent to recuperate its cost-effectiveness.

The overall profit repatriation of multinational companies and foreign investors recorded at $134 million in the period of July-October 2015 as compared with $344 million in the corresponding period of 2014.

With an increase in the efficacy of data services and subscribers every month the whole situation has been helpful for the sector. The unceasing growth in revenues is expected to boost revenue earning of the mobile phone companies and dividends subsequently, which might attract them to carry on their investment strategies in the Pakistani market.

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