Telenor Pakistan took a serious dip in the third quarter of 2019. Furthermore, Telenor faces the second consecutive negative quarter and declined in revenue by 10% in the fourth quarter of 2019. As per reports, Telenor’s total revenue stood at 25.3 Billion for the year 2019 while it was 28.22 billion for the same period of the last year.
Telenor claims this decline is due to the challenging and changing macroeconomic environment of Pakistan. Furthermore, dis-allowance to take the service fee from the second quarter of 2019 also contributed to the revenue declination.
So, these challenges continued to impact the financial performance for the consecutive second quarter. Traffic and subscription revenue declined by 10% while EBITDA declined by 27%. Furthermore, lower ARPU contributed a lot to lower revenue. ARPU was declined up to PKR 181 per user per month while it was PKR 209 for the same month of the last financial year.
Furthermore, network expansion cost and inflated rates of energy caused 10% higher open. While in comparison with the last year it remained quite stable. Despite this fact of declined revenue, record subscribers crossed and hit the figure of 45 million. Approximately, one million new customers were added into the network during fourth quarter. So, the subscriber base increased by 4% as compared to that of last year.
In its financial report, the company said the renewal of its 900 MHz and 1800 MHz GSM license is still pending in Islamabad High Court where the company had a stay order till the final verdict.