Telenor Pakistan shared its interim report suggesting an 11pc decrease in subscriptions and traffic revenues for the second quarter of 2020 due to the Covid-19 outbreak that impacts the pre-paid sale as well.
The quarterly revenues of Telenor Pakistan stood at Rs24.2 billion, while last year during the same period, the company’s revenues were Rs26.2 billion. This shows a negative impact came due to lockdowns that affected sales and lower Average Revenue per User (ARPUs) as well. Compared to the same period last year, ARPU declined 13pc, from Rs195 to Rs170 per user month.
Telenor Pakistan’s Revenue Decrease by 11%
Gross subscriber intake declined significantly in April and May, leading to a loss of 1.4 million subscribers in the quarter. The mobile customer base closed at 45.1 million, which is 3% higher than last year.
The report says that the EBITDA decreased by 1pc, as OPEX reductions due to lower market activity and stringent cost control were not sufficient to fully offset the revenue decline. Non-recurring items this quarter had a positive impact on EBITDA of approximately 11 percentage points.
For the deposit related to the license renewal, Telenor Pakistan paid an installment of approximately NOK 0.6 billion which expired on May 25, 2019. The renewal of Telenor Pakistan’s GSM license is still not concluded.
The Telenor’s operating profit decreased marginally on a quarterly basis Y-o-Y but dropped drastically on a half-year basis. For the first six months of 2019, the operating profit was NOK 906 but now the operating profit has dropped to NOK 638 million.
The COVID-19 pandemic has brought unprecedented challenges in Q2, 2020. In the second quarter, in all regions where Telenor operates, subscription and traffic revenues decreased by 4% on an organic basis, driven by the loss of prepaid revenues in Asia as well as roaming revenues.
Total reported revenues were NOK 30.9 billion. This is an increase of NOK 4.0 billion or 15%, driven by currency effects of NOK 2.8 billion as well as the consolidation of DNA.
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