Telenor Pakistan, after a serious dip during Q3 2019, has now posted the second consecutive negative quarter with a 10% YoY decline in revenues in local currency during Q4 2019.
According to details, Telenor’s total revenues during the reported period stood at PKR 25.3 Billion, down from PKR 28.220 that is generated during the same period last year.
Telenor said that decline in revenues was mainly due to the challenging macroeconomic environment in Pakistan, combined with the disallowance of the service fee from the second quarter 2019.
Company said that above reasons continued to impact financial performance for consecutive second quarter.
Subscription and traffic revenues decreased by 10% and EBITDA decreased by 27%. Telenor said that this decline in revenue is mainly due to lower ARPU, which reached PKR 181 per user per month, down from PKR 209 per user per month during the same period last year.
In addition, increased energy prices and network expansion led to a 10% higher opex. Compared to the third quarter of 2019, performance remained stable.
In spite of this, the 45 million subscriber mark was crossed, with 1.0 million new customers in the fourth quarter. This lifted the subscriber base to a 4% higher level than last year.
In its financial report, the company said that the renewal of its 900 MHz and 1800 MHz GSM license, which expired on 25 May 2019, is still pending in Islamabad High Court, where the company has a stay order until the final outcome.