Telenor expresses concern over declining customer base due to delays in PTCL acquisition of its Pakistan operations

Telenor Group has expressed concerns regarding the ongoing delays in the sale of its Pakistan operations to Pakistan Telecommunication Company Ltd (PTCL). The company stated that the delay in obtaining necessary regulatory approvals has resulted in a consistent decline in Telenor Pakistan’s customer base.

According to a news report, Telenor International, in its first-quarter report for the current calendar year released in Norway, noted that the regulatory approval process for the divestment of Telenor Pakistan had taken longer than anticipated. Despite the challenges, Telenor expects the acquisition to be finalised in the second half of 2025.

The group announced the sale of Telenor Pakistan in December 2023, subject to regulatory approvals and other customary conditions. 

Telenor stated it continues to engage with authorities to secure the necessary clearances, highlighting the strong merits of the deal for all stakeholders. The company remains hopeful that the required approval will be obtained in the coming months, with the transaction expected to close later this year.

As a result of the delay, Telenor Pakistan’s customer base has continued to shrink, with a 3.1% decline in the first quarter of 2025. However, Telenor Pakistan reported a 12.5% increase in its average revenue per user (ARPU) during the same period, attributing the rise to improved macroeconomic conditions and lower energy prices, which helped alleviate cost pressures.

The company’s revenue for the first quarter of 2025 grew by 14% to NOK 1.07 billion (approximately Rs 27.02 billion), compared to the same period in 2024. Telenor Pakistan’s adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) for the quarter was NOK 592 million (around Rs 14.94 billion), a notable increase from NOK 474 million (Rs 11.96 billion) in Q1 2024.

In the fiscal year 2024, Telenor Pakistan’s total revenue amounted to NOK 4.75 billion (Rs 120 billion). Despite the challenges, the company ended the year with profits.

Telenor’s business operations in Asia also include Grameenphone in Bangladesh, where it holds a 55.8% stake, as well as CelcomDigi in Malaysia and True Corporation in Thailand. The company also has a joint venture, Easypaisa, a digital bank in Pakistan, in which it holds a 55% stake.