Covid-19: Telenor posts reduced subscriptions, revenues for 2nd quarter of 2020

Revenues drop from Rs26.2bn in the 2nd quarter of 2019 to Rs24.2bn

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ISLAMABAD: Telenor Pakistan reported a 11pc decrease in subscriptions and traffic revenues for the second quarter of 2020m mainly on the back of the Covid-19 outbreak. 

The company’s quarterly revenues stood at Rs24.2 billion, as compared to Rs26.2 billion during the same period last year.

The statement said that the negative impact came due to lockdowns that affected sales and also the lower Average Revenue Per User (ARPUs). ARPU declined 13pc to Rs170 per user month, down from Rs195 per user per month during the same period last year.

Gross subscriber intake (new customers minus churned customers) 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.

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.

In the second quarter, Telenor Pakistan paid an installment of approximately NOK 0.6 billion for the deposit related to the license renewal, however, its renewal of GSM license, which expired on May 25, 2019, is still not in court and not concluded.

The operating profit for the telecom company decreased marginally on a quarterly basis Y-o-Y but dropped drastically on a half-year basis, where their operating profit was NOK 906 million for first six months of 2019 but now they made the operating profit of NOK 638 million.

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