Islamabad, Feb 7: PTCL will finalize its acquisition of Telenor Pakistan in early 2025 due to regulatory delays.
Telenor Group’s latest report states that both companies signed an agreement on December 14, 2023, to transfer full ownership to PTCL.
However, the completion of the deal remains contingent upon regulatory approvals and standard procedural requirements.
Initially, Telenor Group had projected that the transaction would conclude in early 2025. However, as of December 31, 2024, Telenor Pakistan does not meet the conditions to be classified as held for sale, thereby extending the expected timeline.
The Group’s 2025 outlook still includes Telenor Pakistan, but it expects to finalize the divestment within six months. The completion date will not significantly impact the Group’s outlook.
Telenor Group has also highlighted concerns over the political and economic instability in Pakistan, citing risks related to civil unrest, security, and financial uncertainty.
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Despite these challenges, Telenor Pakistan demonstrated strong financial performance, recording a 12% growth in service revenue.
The increase was attributed to effective monetization strategies, with Average Revenue Per User (ARPU) rising by 13%, counterbalancing a 2.7% decline in the subscription base. Cost optimization measures and reduced fuel prices further supported EBITDA growth, which surged by 25.2% during the period.
The mobile subscription base in Telenor’s Asian operations declined by one million, with Pakistan contributing significantly to this drop. At the end of 2024, Telenor Pakistan reported 43.2 million subscribers, while Telenor Bangladesh had 84.3 million.
Despite solid growth in Pakistan, the overall EBITDA for Telenor’s Asian segment declined by 5.7%, primarily due to revenue declines and higher operational expenditures in Grameenphone, Bangladesh.
Inflation and strict monetary policies slowed economic recovery earlier in the quarter, but Telenor Pakistan’s strong performance helped offset the impact.
The report also highlighted a 3.3% decrease in service revenue across Asia, primarily driven by challenges in Bangladesh. However, positive growth in Telenor Pakistan and continued expansion in IoT services through Connexion provided some relief.
Financially, Telenor Pakistan reported losses of NOK 107 million from asset disposals, contributing to total expenses of NOK 400 million across Telenor’s operations. Meanwhile, a deferred tax asset of NOK 227 million recognized in Pakistan positively influenced the Group’s overall tax position for the quarter.
As regulators approve the deal, Pakistan’s telecom sector awaits its finalization, which will reshape competition.
