Telenor Pakistan Q2 2008 Earning Snapshot
Telenor recently announced second quarter results for 2008 and lowered its growth forecast. The stock price fell down afterwards. This comes at a time when the leadership of Telenor Pakistan is about to change. This is in line with my previous post in which I commented on the slowdown for Telenor after a few months of rapid growth. On a positive note the margins improved.
According to Bloomberg “Increased costs of living in Pakistan, Bangladesh and Thailand and a rising Norwegian krone prompted Telenor to lower its 2008 revenue growth forecast to 3 percent from 5 percent. The company relies on eastern Europe and Asia for growth as Nordic markets reach saturation and traditional phone usage decreases.”
Among other trends, revenue per user (ARPU) continues to slide and there were fluctuations in the currency exchange rates. The highlights below are taken from Telenor’s second quarter earnings report available at Telenor website.
• The subscription growth slowed down compared to the previous quarter with net additions of 1.4 million, while the market share have remained stable at 20%, ranking Telenor Pakistan as the second largest mobile operator in Pakistan.
• ARPU in local currency decreased by 14% as increased average usage was more than offset by declining average prices.
• Total revenues in local currency increased by 54% mainly due to subscription growth of more than 7 million, partially offset by lower ARPU.
• EBITDA continued to improve and increased by 29% measured in local currency compared to the previous quarter.
• Capital expenditure was related to network roll-out to accommodate subscription growth and increased traffic.
• From 1 June 2008, in line with the national regulator‘s decision, the mobile termination rates in Pakistan were reduced from PKR 1.25 to PKR 1.10. The rates will be further reduced to PKR 1.00 from 1 January 2009 and to PKR 0.90 from 1 January 2010.
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[...] Original post by State of Telecom Industry in Pakistan [...]
[...] State of Telecom Industry in Pakistan Tags: Bangladesh, Leadership, Margins, Norwegian Krone, Quarter Results, Rapid Growth, Slowdown, [...]
Good to know that Telenor is now second Largest network in Pakistan and i am sure with new and Innovative ideas, telenor growth will be high in near future and will become the Largest Network.
Best Regards
Mahmood Ali Malik
The r slow and steady but on the way to win the race…:)
I’m impressed by telenor’s growth to start with, until things change Zong and Telenor would outsize the market with their brands which have a fit ratio of more than 80% as for last couple of qtrs. There seems to also be some major new things in 9 3 plans of both companies, with new products and brands. Mobilink has phased out almost in the recent-past. I believe what happened with AT&T, the same thing is going to happen to them. They can always make a come back, provided they understand and listen the market instead of living in the box. Zouhair Khaliq is a pretty good visonary, I’m sure his leadership will turn things around in the near future back to normal.
Zouhair Sb, people need companies like Mobilink and market drivers like you to stay and lead market from front! Please take some immediate action.
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-I’ve been thinking for Mobilink’s VAS side. The sluggish growth and problem set in that particular area is their more focus on features and less emphasis on solving specific consumers issues.
-If you look at their ads they are like ‘we have this, we got that, we have this and that’ - you find very little of focus and solving something for the consumer. They’re always in the race of trying to be everything for everyone getting nowhere. Their 555 Results service serves the specific purpose but their Mag couldn’t fit in properly to convey their niche for that service.
-When something is available on alternative media like, tv, interner paper, you try finding a niche within that campaign and focus on specific openings of your product. All of this is technical side of market and segment planning which it seems they are absolutely unaware of.
-One other observation is that they can’t some how fit into the working of competition environment becasue they have been used to monopoly for long now. They have baffled after seeing so much competition coming towards them.
Yep had to get these observations out of my system. What do they say, sala ye khana hajam nahin hota jab tak kuch dimag ke undar para rahay. This is my Lipton - Clears mind! ;)