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ADN Telecom earned record profit in FY23 as recent investments started bearing fruit.
The IT firm reported Tk 258.60 million in profit for the year, a 54.3 per cent increase from the previous fiscal year, according to the Dhaka Stock Exchange (DSE).
The company in its earnings note published on Thursday attributed the remarkable profit growth to business expansion and launching of new products. Effective cost management also contributed to securing higher profit, it said.
One of the leading IT and telecommunication service providers in Bangladesh, ADN Telecom has been able to turn its latest ventures profitable on the back of rising demand for Internet, software and IT-enabled services for automation in local businesses.
Unlike manufacturing companies, the IT firm hardly bore any impact of the devaluation of the taka against the dollar.
The company's board declared 15 per cent cash dividend for FY23, higher than what it paid to shareholders for FY21 and FY22.
Despite record profit and dividend declaration, the company's stock fell 1.76 per cent to Tk 122.50 on the DSE on Thursday.
The company is yet to disclose the annual revenue for FY23.
However, in the nine months through March this year the company's revenue rose more than 21 per cent year-on-year to Tk 1 billion.
Latest investments
ADN Telecom acquired a 10 per cent stake in Shohoj in June this year by investing Tk 120 million as part of its business expansion. The company said the investment had a positive impact on its long-term growth and success.
Earlier, company secretary Md Monir Hossain said the company invested in Shohoj, having been encouraged by its good business potential.
Shohoj was launched as an online ticketing platform in Bangladesh in 2014 under the brand name "Shohoz".
It holds the number one position in terms of the usage of its ticketing software by long-distance bus operators nationwide as well as use of its web-based ticketing systems.
Moreover, "Shohoz" exclusively manages the online integrated ticketing platform of Bangladesh Railway.
Earlier, in July last year, ADN Telecom acquired 60 per cent shares of SOS Developments, a fire security service provider, at a cost of Tk 20 million for 10 years.
Bolstering services
ADN Telecom offers a wide range of data, voice and Internet services to local and international clients.
It raised Tk 570 million through an initial public offering (IPO) at the end of 2019 under the book-building method for business expansion.
The company developed infrastructures and established a data centre from the IPO fund.
In May this year, the company decided to construct a 13-storey commercial building and set up a data centre there in the capital's Badda. The building will have a total approximate floor space of 116,400 square feet, the first and second floors of which will be used as data centre.
The estimated cost of the project is Tk 700 million to be financed through a bank loan jointly arranged by the City Bank and City Bank Capital.
The company will hold an annual general meeting on December 4 virtually for the final approval of the dividend. The record date is October 26.
The net asset value per share increased to Tk 30.64 for FY23, from Tk 27.56 the year before.
The net operating cash flow per share slid to Tk 2.55 for FY23 from Tk 3.28 a year ago due to a decrease in cash generation from operation as well as advances for new investments.
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