ISLAMABAD, February 7, 2025 – The long-awaited acquisition of Telenor Pakistan by Pakistan Telecommunications Company Limited (PTCL) is now expected to be finalized in the first half of 2025, due to delays in obtaining necessary regulatory approvals. This update was revealed in Telenor Group’s fourth-quarter financial report, which highlighted the shifting timeline for the completion of the transaction.
Telenor Group signed an agreement on December 14, 2023, to sell 100% of its telecom operations in Pakistan, specifically Telenor Pakistan (Private) Limited, to PTCL, the state-owned telecommunications and ICT giant in Pakistan. However, the deal has been subject to regulatory approvals and other customary conditions, leading to delays in its completion.
In its third-quarter report, Telenor had initially projected that the deal’s closure would take place in early 2025. However, due to the ongoing regulatory delays, Telenor has now confirmed that the acquisition will likely be completed by the first half of 2025, pushing the expected closing date further. The report also indicated that Telenor Pakistan will not be classified as “held for sale” as of December 31, 2024, because the deal has not yet been finalized.
Despite the delays, Telenor Group remains optimistic about the eventual closure of the transaction within the revised timeframe. The company also noted that while the timing of the sale may impact some short-term forecasts, it does not expect any major disruption to its overall outlook for 2025. “We still expect the divestment of this business to close by the first half of 2025, although we do not anticipate the exact timing of this event to materially influence the group’s outlook,” the report stated.
Telenor Group’s report also pointed to the challenging political and economic environment in Pakistan, which has contributed to heightened risks, including the potential for civil unrest, security concerns, and financial instability. These factors, according to the company, have made it more difficult to complete the acquisition as planned, adding uncertainty to the overall situation.
Despite the delays in the acquisition process, Telenor Pakistan has demonstrated strong financial performance. The report highlighted a 12% increase in service revenue, largely attributed to Telenor Pakistan’s successful monetization strategy. This growth was further bolstered by a 13% rise in average revenue per user (ARPU), which offset a slight 2.7% decline in the subscriber base. The company’s focus on retaining quality customers and reducing churn has paid off, resulting in solid earnings before interest, taxes, depreciation, and amortization (EBITDA) growth of 25.2%.
However, while Telenor Pakistan posted strong performance in the country, Telenor’s overall Asia operations faced challenges. The total mobile subscription base in the region declined by 1 million, primarily due to a decrease in Pakistan. Despite Telenor Pakistan’s growth, the overall EBITDA for the Asia segment dropped by 5.7%, primarily due to declining revenues from Grameenphone in Bangladesh and increased operating expenses across the region.
The fourth-quarter report also detailed losses on the disposal of fixed assets, including NOK 107 million from Telenor Pakistan. Additionally, workforce reductions contributed to the company’s costs, with NOK 55 million attributed to Telenor’s operations in Norway.
Looking ahead, Telenor Group remains confident in the strength of its Pakistan operations and expects continued growth despite the delays in the acquisition process. As the political and economic conditions stabilize, the company anticipates that Telenor Pakistan will remain a key part of its growth strategy in the region.
With the transaction slated to close in mid-2025, PTCL’s acquisition of Telenor Pakistan will mark a significant reshaping of the telecom landscape in Pakistan, further consolidating PTCL’s position as a leading telecommunications provider in the country.