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Bangladesh Submarine Cables showed a 23 per cent year-on-year reduction in revenue and more than 34 per cent profit erosion in FY24, compared to the previous year.
According to the financial statement of the state-owned voice and data bandwidth service provider, the revenue fell mainly due to lower International Private Leased Circuit (IPLC) rent amid price reduction and market competition. Historically, more than 75 per cent of the revenue comes from this component.
Also, income from IP Transit service has come down for price reduction, market competition and disconnection with default parties. That accounts for more than 18 per cent of the revenue.
According to the company, the profit slumped for lower revenue in IPLC Rent, IP Transit service, increase in operation and maintenance expenses and provision for bad debts.
Bangladesh Submarine Cables provides voice and data bandwidth services.
The company's board declared a 40 per cent cash dividend for general shareholders for FY24, the lowest since FY21.
Following the earnings disclosure, the stock fell 4.96 per cent to Tk 130.40 per share on Sunday on the Dhaka Stock Exchange.
The net operating cash flow per share, an indicator that shows a company's ability to generate cash from its operations, increased to Tk 17.63 per share in FY24 from Tk 14.68 the year before.
The company scheduled the annual general meeting for November 27 and the record date for the entitlement of dividends is November 4.