PTCL acquisition delay hurts Telenor Pakistan’s user base

Telenor Group has raised red flags over the ongoing delays in the regulatory clearance for the sale of its Pakistan operations to Pakistan Telecommunication Company Limited (PTCL).

In its Q1 2025 financial update published from Norway, the company stated that the regulatory approval process has taken “longer than anticipated,” impacting business performance in Pakistan.

The sale agreement, initially announced in December 2023, is still pending approval from relevant authorities. Telenor confirmed it remains actively engaged with regulators to move the process forward, stressing that the deal holds “strong merits for all stakeholders.” The company now expects the acquisition to be finalized in the second half of 2025.

Customer Loss Despite Revenue Gains

One of the most pressing concerns for Telenor is the continuous decline in its customer base in Pakistan. The Q1 report revealed a 3.1% drop in subscribers, a consequence that the company directly links to the uncertainty caused by regulatory delays.

Interestingly, while user numbers declined, the average revenue per user (ARPU) rose by 12.5% in the same quarter. Telenor credited this growth to stabilizing macroeconomic indicators and reduced energy costs, which helped mitigate operational expenses.

Despite operational challenges, Telenor Pakistan recorded a 14% year-on-year increase in revenue in Q1 2025, reaching NOK 1.07 billion (roughly Rs 27.02 billion). Adjusted EBITDA also rose significantly to NOK 592 million (around Rs 14.94 billion), up from NOK 474 million (Rs 11.96 billion) during the same period in 2024.

For the full fiscal year 2024, Telenor Pakistan’s total revenue stood at NOK 4.75 billion (approximately Rs 120 billion), with the company closing the year in profit.

Apart from its Pakistan operations, Telenor maintains a strong footprint across Asia. It holds a 55.8% stake in Grameenphone in Bangladesh, and is involved with CelcomDigi in Malaysia and True Corporation in Thailand. In Pakistan, it also jointly operates Easypaisa, a leading digital financial services platform, with a 55% ownership.