Telenor Pakistan profit grows by 10.7% despite fall in the number of subscribers, the country’s second-largest mobile operator, reported solid performance for the quarter that ended on September 30, 2022.
According to Telenor Group’s financial results, Telenor Pakistan reported a total of NOK 1.32 billion (~Rs. 29.53 billion) in revenues during the quarter, up by 10.7 percent in terms of PKR as compared to the same period last year.
Telenor Pakistan’s service revenues were strong despite the flooding situation. For the operator, high energy prices in Pakistan continue to be a headwind. With regard to the outlook for the year, Telenor maintains the expectation of low single-digit growth in service revenues.
Telenor Group’s mobile subscription base in Pakistan was impacted by flooding and network outages.
The number of subscribers fell by 756,000. The subscriber base reached 48.8 million at the conclusion of the quarter, matching the number from the same time last year.
Operating costs rose by 32%, primarily as a result of higher energy costs. The rise in operational costs caused a 22% decrease in underlying EBITDA. The reversal of the sim tax provision had a beneficial effect on reported EBITDA, which rose by 70%.
A one-time effect related to the reversal of the sim tax provision in Pakistan of NOK 0.6 billion (Rs 12.58 billion) as a result of a High Court decision in favor of Telenor Pakistan more than offset the negative impact of an increase in energy costs of NOK 0.4 billion that had a negative impact on EBITDA development by 3 percentage points.