Telenor Myanmar/Facebook
Telenor Myanmar’s average revenue per user (ARPU) in the fourth quarter of 2015 stood at K5,995 ($4.91), four percent lower than the normalised ARPU for the third quarter, the Norwegian telecom firm’s financial results for the year ended December 31 show.
Telenor said the decline in ARPU was triggered by “tougher competition, coupled by network expansion into low ARPU rural areas” in Myanmar. Average revenue per user is defined as the total revenue divided by the number of subscribers.
However, the telecoms firm added 1.9 million new subscriptions during the fourth quarter. By the end of the fourth quarter a total of 13.7 million subscriptions were recorded, according to the report.
Revenues increased by 14 percent compared to normalised revenues for the third quarter 2015, driven by strong subscription growth.
Telenor said the EBITDA (Earnings before interest, taxes, depreciation, and amortisation) for the fourth quarter was driven by the continued growth in subscription and usage. The EBITDA margin for the quarter increased by three percentage points compared to the normalised margin for the third quarter.
Capital expenditure remained high in the quarter, with the expansion of network coverage across Myanmar. At the end of the fourth quarter a total of 4,173 sites were put on air, adding a total of 1,048 sites during the quarter, according to Telenor.
Telenor said 52 percent of its subscribers are active data users, comparable to relatively-developed markets like Malaysia and Thailand. The firm’s SIM market share is currently estimated to be around 37 percent.
In terms of group operations, Telenor Group reported a total turnover of NOK128.175 billion ($15.9 billion), representing year-on-year organic revenue growth of 4.7 percent.
Telenor noted that the increase was due to positive currency effects of NOK11.1 billion and a ‘significant contribution’ from its Myanmar unit, which were partly offset by tougher market conditions in Thailand, Denmark and Malaysia.
“Five percent organic revenue growth and five percent organic EBITDA growth in 2015 shows the strength of our portfolio of operations. We are, however, entering 2016 with increased competition in some of our key markets, and it will be my key priority to secure focus on profitable growth and cost efficiency,” Sigve Brekke, chief executive officer of Telenor Group, said.
From: Myanmar Business Today