Strong growth momentum with healthy contribution from data

DHAKA,  July 19 (NsNewsWire) —  Grameenphone Ltd. reported revenue of BDT 55.6 billion for the first half of 2016, up 8.1% from the same period last year. Subscription and traffic revenue grew by 10.9% with growing contribution from data. Data revenue grew by 64.6% (YoY) with 186.4% (YoY) growth in corresponding volume. Voice revenue also grew by 4.8% (YoY) with healthy development of minutes of usage. During 2nd quarter of 2016, revenue grew by 6.6% (YoY) to BDT 28.1 billion.

During the first half, GP acquired 0.2 million new subscriptions, taking the subscription base to 56.9 million (as per BTRC definition). This constitutes 7.1% subscription growth (YoY) with SIM market share of 43.3% (as of May’16). GP acquired a healthy 6.1 million internet users, taking the period end base to 21.8 million.

“First half of 2016 has been a solid one for Grameenphone with strong growth momentum in place. Data continues to grow with healthy user addition and volume consumption. We completed rollout of 10,000 3G sites, taking the population coverage to 90%”, said Rajeev Sethi, CEO of Grameenphone Ltd. He added, “Our voice revenue is also growing with encouraging minutes of usage. This will help us in maintaining the momentum as we move forward.”

Net profit after taxes for the first half was BDT 10.7 billion with 19.2% margin compared to BDT 10.5 billion with 20.4% margin of the corresponding period of 2015. Higher revenue and efficiency in operating expenditure led to a healthy EBITDA (before other items) of BDT 30.6 billion with corresponding margin of 54.8%. Earnings per share (EPS) for the period stood at BDT 7.92.

“We have delivered double digit subscription and traffic revenue growth during the 1st half of 2016. Our simplified customer centric products and continued investment on 3G coverage expansion are driving this growth. This solid revenue growth and efficient spending resulted in improved EBITDA margin. Earnings per share was stable despite higher depreciation and amortization”, said Dilip Pal, CFO of Grameenphone Ltd. He added, “I am happy to announce that Grameenphone Board of Directors declared interim dividend at the rate of 85% of paid up capital.”

GP invested BDT 13.6 billion during the period for further rollout of 3G sites, 2G coverage, capacity enhancement for catering higher volume of data and voice. Meanwhile, GP, the largest contributor to exchequer paid BDT 33.1 billion, comprising 59.5% of total revenue to the national exchequer during the period in the form of taxes, VAT, duties and license fees.

The Board of Directors has declared interim dividend in cash at the rate of 85% of the paid up capital (BDT 8.50 per share of BDT 10 each) for the year 2016 out of the provisional net profit of the company for the half year ended at 30 June 2016 and retained earnings up to 31 December 2015. This dividend represents 107% of the after tax profit for the half year ended at 30 June 2016. The Shareholders as of the record date of 8 August 2016 will be entitled for this dividend, which will be distributed within the timeframe stipulated by the regulators.