Telenor Pakistan Fourth Quarter 2008 Results

by Teleco Analyst on February 25, 2009

www.pro-pakistan.com

Telenor Pakistan has performed really good in the fourth and last quarter of 2008 as per the reports even though the third quarter was a real disappointment for everyone.Â The major highlights for the 4th Quarter 2008 are given below as per their reports:

â€¢ The number of subscribers increased by 916,000 during the quarter, while the estimated subscription market share remained stable at 21%.
â€¢ ARPU in local currency decreased by 13% as both average usage and prices declined due to increased competition and the general economic slowdown in Pakistan.

â€¢ Total revenues in local currency increased by 20% mainly due to a subscription growth of approximately 5 million during 2008, partially offset by lower ARPU.

â€¢ EBITDA increased by 51% in local currency mainly due to higher revenue growth. The EBITDA margin improved by 9 percentage points compared to the previous quarter primarily due to a 9% revenue growth and increased usage of own fi bre network.
â€¢ Capital expenditure in local currency increased due to high investments in network quality and capacity. Large network roll-out deliveries were completed during the fourth quarter.
â€¢ Telenor Pakistan has acquired a 51% stake in Tameer Bank, and will use this position to facilitate mobile banking.

Below is a summary that i made to make life easier for our readers who are interested in studying the detail performance of Telenor Pakistan.

Telenor Pakistan 2007-08Â www.Pro-Pakistan.com

The above numbers clearly show remarkable performanceÂ by Telenor in the past two years and the same growth is visible in the last quarter of 2008. Since the market is now entering the stage of maturity, not much growth is expected in the first quarter of 2009. Telenor has also now started focusing on its Postpaid brand and relaunched it. Persona will surely help them bring some high ARPU customers but will increase the risk of bad debts. Since Warid is the leader in Postpaid subscribers, Telenor Persona will have to face a tough time to add new subscribers. Moreover, Mobilink is also trying its best to retain its Corporate customers who are the most important segment left with Mobilink beside the regular prepaid users.

Below is the graphical display of the above Key Performance Indicators (KPI’s). Please do give us your feedback and let us know what you think?