GP’s earnings sink to 3-year low

Grameenphone reported its lowest earnings in three years due to adjustments in finance costs and tax expenses.

Its EPS stood at Tk 25.28 in 2021—the lowest level not seen before 2018 when it was Tk 24.71, according to its latest annual report.

The country’s top mobile phone operator’s EPS increased steadily from 2016 to 2020 but went down in 2021.

Like EPS, its net asset value (NAV) slumped 23 per cent to 36.94 from 38.59 during the period.

However, Grameenphone’s total revenue stood at Tk 14,310 crore in 2021, up from Tk 13,960 crore in 2020.

The increase in total revenue mainly came from higher mobile communication revenue, which was driven by higher bundle & data only services, partly offset by lower voice-only revenue, said the report.

During the period, its net profit after tax was Tk 3,410 crore, a sharp decrease of almost 24 per cent from Tk 3,720 crore recorded in 2020.

Grameenphone’s investment totaled Tk 3,720 crore in 2021 and Tk 41,660 crore since its inception.

Grameenphone revenue from voice services decreased by 8.1 per cent, while data-only revenue increased by 2.3 per cent. The total subscription base grew by 5.3 per cent, along with 8 per cent growth in active internet use, said the report.

“The year 2021 has been full of uncertainties as we faced challenges from the Covid-19 pandemic and associated restrictions, which had an impact on our operational and financial performance to an extent,” said Grameenphone CEO Yasir Azman in the annual report.

The total numbers of internet subscribers were 44.6 million (8.0 per cent increase from the previous year), of which 62 per cent were 4G subscribers. The company saw a 53.3 per cent increase in data usage from 2020 volumes.

Asked to comment on the annual report, Grameenphone Company Secretary Khurshid Alam said, “There is no scope to say anything about the annual report right now as we always organise a meeting for investors where all kinds of questions are answered.”

On Monday, Grameenphpone share prices remained unchanged at Tk 327.10 on the Dhaka Stock Exchange.