Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
Grameenphone's profit grew at a pace of 30 per cent year-on-year to Tk 11.93 billion in the second quarter through June, driven by a boost to data revenue.
By deploying new spectrum and new site rollout, the market leader added 1.1 million new subscribers in the latest quarter, expanding the customer base to 81.3 million.
About 56.7 per cent of them use the Internet.
The average data usage per user reached 7GB milestone during the quarter, the highest ever in GP's history, with 32.5 per cent year-on-year growth.
Due to higher subscription and data usage, year-on-year data revenue rose 17.10 per cent to Tk 11.20 billion in the quarter, said Jens Becker, chief financial officer (CFO) of Grameenphone, in its earnings note.
The country's leading mobile phone operator delivered better financial performance in Q2, with a steady top-line growth for the last nine consecutive quarters amidst rising inflation and macroeconomic challenges, said the company.
In the three months to June, GP's revenue rose 5.6 per cent to Tk 40 billion, mainly relying on a 5.3 per cent growth in daily subscription and traffic revenue.
"Internet usage growth is contributing to our overall performance," said Mr Becker.
However, the mobile operator's finance expenses in the April-June quarter multiplied by more than six times to Tk 5.34 billion compared to the same period of the previous year.
That is because of the June payment of Tk 9.9 billion in VAT on 2G license renewal fee and a payment of Tk 7.8 billion in settlement of tax disputes until 2018, said BRAC EPL Stock Brokerage in an analysis.
Having made such substantial payments in the quarter, GP opted for no interim dividend this time. The payments to the government exchequer put pressure on the company's cash position.
GP paid Tk 70.30 billion in total in the first six months through June this year, equivalent to 91 per cent of its total revenue, in taxes, VAT, duties, license and spectrum assignment fees etc, while it was 73 per cent in the same period a year before.
GP invested Tk 14 billion in the first half of this year to ensure better network coverage and expansion.
Forty per cent of 21K sites of GP are now connected through fiber.
"We prioritized meeting our customers' needs through digital-centric innovation and services," said Chief Executive Officer Yasir Azman.
The approach establishes the foundation for a future-ready data network, enhancing customer value and building the number one network in the country, he added.
At the time of the country's largest spectrum auction in March last year, the market leader bought the highest allowable 60 MHz spectrum at Tk 33.61 billion.
GP's net profit rose 14 per cent to Tk 19.73 billion in the six months through June this year while revenue rose 4 per cent to Tk 77.35 billion.
Its year-on-year bottom-line growth far exceeds the top-line growth in the second quarter because of what BRAC EPL said is a "one-off adjustment in income tax through provision released during the period".
GP achieved a 5.7 per cent growth in EBITDA (earnings before interest, tax, depreciation and amortization), doubled from the previous quarter, maintaining a strong EBITDA margin of 61.1 per cent.
During the quarter, GP and the National Board of Revenue signed agreements settling income tax disputes of the last 13 years to FY20 through alternative dispute resolution process.
"GP will continue constructive dialogues with relevant stakeholders for enabling digital lives and thereby ensuring sustainable economic growth," said the CEO.
The company's annual profit was Tk 30.1 billion in 2022, the lowest in five years, as it was hit hard by foreign exchange loss and a regulatory ban on SIM card sales.
The company disbursed 220 per cent cash dividend for 2022.
It is the largest stock if market cap is considered. The stock has been languishing at the floor price of Tk 286.6 since September last year.
babulfexpress@gmail.com