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Despite higher revenue, Grameenphone's profit dropped slightly by 0.52 per cent year-on-year to Tk 7.51 billion in July-September this year, due to higher energy costs and operating expenses.
The leading telecom operator's revenue stood at Tk 40.10 billion for July-September this year, registering a 1.4 per cent growth over the same quarter last year, according to its financial statements published on Sunday.
Earnings per share stood at Tk 5.56 in the September quarter this year, down from Tk 5.59 per share in the same quarter a year before.
The GP attributed higher depreciation and amortization costs from capitalization of 20 MHz spectrum and rooftop leases to the decline in profit.
In this quarter, total cost increased by 1 per cent year-on-year, with the cost of goods sold down by 12.5 per cent, which was partially offset by a 3.5 per cent increase in operating expenses.
"The main drivers continue to be high energy costs as well as operation and maintenance costs from IT and network modernization," the company said.
GP reported a total subscriber base of 85.6 million at the end of the September quarter, a 1.2 per cent growth over the same quarter last year. This quarter saw a 4.8 per cent increase in 4G users, with total data users reaching 51.2 million.
The telecom operator has been navigating a challenging economic downturn, which has put significant pressure on businesses across sectors, including telecom.
Despite the tough macro environment, strategic measures are starting to yield results. GP remained focused on growth strategies and showed stability in performance by delivering consistent top-line growth.
The company maintained strong profitability, achieving an EBITDA margin of 58.9 per cent, up 1.7 percentage points year-on-year in the September quarter.
EBITDA is a measure of a company's profitability that shows earnings before interest, taxes, depreciation, and amortization.
Grameenphone's resilient financial position has enabled it to invest in long-term network and digital capabilities while maintaining healthy returns.
GP's nine-month profit, however, plunged 23 per cent year-on-year to Tk 22.64 billion through September this year, while revenue dropped 1.6 per cent to Tk 119.5 billion amid a challenging economic environment.
Annual Performance
Despite the challenging macroeconomic environment, GP secured a 10 per cent year-on-year growth in profit to Tk 36.4 billion in 2024, the highest in three years, supported by operating efficiency.
Buoyed by the profit growth, the telecom operator paid a total of 330 per cent cash dividends for 2024, the highest-ever dividend by GP since its listing.
However, GP registered a 0.17 per cent year-on-year decline in revenue, posting Tk 158.44 billion for 2024, owing to cautious consumer spending, particularly on data, in an adverse business climate.
Stock Performance
Having remained stuck on the floor at Tk 286.7 per share on the Dhaka Stock Exchange for more than 18 months until January 2024, GP's stock slid gradually to Tk 222.2 per share in June last year after the removal of the price restriction in February of that year.
After the fall of the Hasina-led government on August 5 last year, the stock surged 40 per cent within the next 10 days to reach Tk 387 per share due to over-enthusiasm among investors. Since then, GP's stock has experienced a correction.
It closed at Tk 286.1 per share on the prime bourse on Sunday, shedding 0.60 per cent over the previous day.
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