Banglalink continues to grow revenues and progresses with its transformation into a digital leader
Dhaka, May 16 (NsNewsWire) — Banglalink, one of the leading digital communications service providers in Bangladesh, announced its results for the first quarter of 2016. Serving over 31.6 million customers, Banglalink has reported continued growth in revenue and Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA).
Banglalink is a part of VimpelCom, an international communications and technology company,
committed to bringing the digital world to each and every customer across 14 different markets
around the globe.
Erik Aas, CEO of Banglalink, said: “Our total revenue increased 6% year-on- year to BDT 12.2
billion in the first quarter of 2016.The rise was mainly driven by a 60% increase in data revenue
and a 3% increase in voice revenue compared with the first quarter of 2015.”
During the first quarter of 2016, Banglalink’s data revenue increased due to new data customers
and an increase in data usage from existing customers. The expansion of 3Gcoverage and an
industry-wide increase in smartphone penetration also contributed to a sharp rise. Customers
also increased their voice usage, leading to an increase in voice revenue. Despite aggressive
price competition, Banglalink’s Average Revenue Per User (ARPU) increased 4% on the same
quarter the previous year mainly as a result of growing data usage.
Compared to the same quarter in 2015, there was a slight decline in Banglalink’s customer
numbers, as the introduction of strict identity verification procedures contributed to a slowdown in
customer growth across the market. Banglalink is one of the leaders in this mobile security
initiative, and as of 15 May 2016, has succeeded in verifying 25 million customers. Banglalink
believes that this re-verification initiative can provide a solid and secure customer base to
develop new revenue from mobile services in e-commerce, content and payment solutions – all
of which are in line with its digital leadership strategy.
In the first quarter, Banglalink’s underlying EBITDA, excluding one-offs mainly related to
performance transformation costs, reached BDT 5.9 billion representing 26%year-on- year
growth. The increase was driven by both revenue growth and Opex control initiatives, in
particular, maintenance cost optimization. As a result, the underlying EBITDA margin reached
48.1% during the quarter. Banglalink’s capital expenditures in the first quarter amounted to BDT
1.3 billion posting a 44% increase compared with a year earlier as it continues to invest in high-
speed data networks. Banglalink’s 3G network covered 34% of the population at the end of the
first quarter.
Banglalink wants to connect its customers to the digital world in order to unlock the endless
opportunities that digital can brings to consumers lives. To achieve this, Banglalink is preparing
itself to meet the needs of customers in the digital age. “We believe that offering digital services
is the path to the future,” said Erik Aas. “The use of smartphones will grow tremendously, and
enable our customers to have their digital lives literally at their fingertips – from entertainment
and e-Commerce to financial and self-service offerings. To make this a reality for our customers,
we at Banglalink are investing heavily in3G and our organization, as well as our products and
services.”
To make Digital Bangladesh a reality, in cooperation with the ICT ministry, Banglalink recently
launched a Digital Incubation Center as part of Connecting Start Up, Bangladesh’s project to
incubate innovative businesses nationwide. Over 20,000 students participated in Banglalink’s
Grandmaster idea contest to submit concepts for mobile applications with potential to improve
the lives of millions. In another Digital Bangladesh initiative, over 300,000 students across the
country were trained through Banglalink’s nationwide internet awareness campaign.
“I am pleased with the good progress Banglalink is making on its digital journey. I truly believe
that we will set Banglalink up for success to become a digital service provider for our customers,
profitable for our shareholders, and at the same time, be a strong support to the government in
achieving its Digital Bangladesh goals by 2021,” said Erik Aas.