In a previous article at ScandAsia, Telenor was reported to be strengthening its office in Singapore to support a merger process in Thailand and Malaysia and develop operations further in Bangladesh and Pakistan. A process which now seem to be taking shape.
In connection with an arranged Capital Market Day, Norwegian Telenor presented future changes to be made in its internal infrastructure. The company establishes a separate unit in Asia – “Telenor Asia” – with the focus on strengthening its activities and position in Asia and “building scale and profitable business as well as managing risk more effectively”.
Telenor Asia will be comprised of the four countries in which Telenor is already present – Bangladesh, Pakistan, Thailand and Malaysia.
The Norwegian news media E24 reports “positive effects from the merging in Malaysia and Thailand, which has already been embarked upon” to be one of the company’s main priorities and the earning potential to be between 20- and 25 mia. until 2025, provided that the merging is completed by next year. In a stock exchange announcement on the company’s homepage, it was stated, that the establishment of the new unit may enhance the need for structural partnerships or initial public offerings.
Telenor has delivered significantly weaker results in the second quarter and further announced low single-digit growth in service revenue at the 2021 level which forced the stock price further down. This left the company with a market value of 145 billion NOK, almost 40 percent lower than five years ago.