Telenor’s customer expansion slows in Q2 results

Telenor Myanmar’s subscriber count grew to 16.9 million customers, the company announced yesterday, with new users coming to the Norwegian mobile operator at their slowest-ever rate.

The company’s revenue expansion also slowed compared to last quarter, against a backdrop of fierce competition in the local telecoms market.

Telenor brought in 1.4 million new subscribers over the three months to June, representing a jump of 9 percent over the previous quarter. Customersincreased by 13pc between January and March and by 16pc between October and December of 2015.

Telenor Group CEO Sigve Brekke said in the company’s second-quarter results presentation that Myanmar was still a “star” in its portfolio, though revenue growth was not where it once was. “It’s not flattening out, but it’s not growing as much as we have seen in the last few quarters,” he said.

Revenue in local currency was up 3pc from Q1 on subscription and data usage growth, compared to a 9pc increase from Q4 2015 to Q1 2016. Average revenue per user dipped by 8pc quarter-on-quarter “due to increased penetration in rural areas and promotional activities”, the company said. Meanwhile, earnings before interest, taxes, depreciation and amortisation came in at NOK827 million (US$97.5 million) with a margin of 46pc.

Mr Brekke said Telenor Myanmar saw itself occupying a subscriber market share of 38-39pc. However he noted competition is heating up.

“We see quite aggressive offers now from both our competitors on on-net traffic,” he said. “We are responding to that, and I see that we now have a premium position in the market with our network presence but also with our brand.”

The two rivals he refers to are state-owned Myanmar Posts and Telecommunications (MPT) and Qatari telecom Ooredoo. Meanwhile the market is anticipating a new entrant, though the parties that will form it arestill at the negotiating table.

“It seems like the entry of the fourth operator is taking more time than we thought, and we don’t see that coming to the market before the first half of next year,” said Mr Brekke. Telenor said it built 820 sites over the three months, bringing its tower count to 5831. The company targets turning on 7000 sites before next year.


Source: Myanmar Times



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