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GP posts stellar profit, revenue on back of strong customer outreach

Staff Correspondent
18 Jul 2023 20:47:22 | Update: 18 Jul 2023 21:18:23
GP posts stellar profit, revenue on back of strong customer outreach

Mega-cap multinational Grameenphone Ltd posted a 29.7 per cent higher profit in the June quarter of 2023 on a year-on-year basis, driven by strong market execution and a strategic focus on network investment. 

The Bangladesh’s largest telecommunications service provider logged Tk 1,193 crore in net profit in the April-June period this year, up from Tk 920 crore reported in the same period one year ago.

Meanwhile, the listed multinational’s net profit rose by 14 per cent to Tk 1,973 crore in the first six months of 2023, compared year-on-year, as per the company’s audited financial statement unveiled Monday.

GP’s earnings per share (EPS) for the second quarter of 2023 stood at Tk 8.84, which was Tk 6.82 for the same quarter last year. On the six-month basis, its EPS was Tk 14.62 in the January–June this year, which was Tk 12.82 in the January–June period last year.

Yasir Azman, chief executive officer at GP said, “Building on the growth momentum from the first quarter, the second quarter of 2023 demonstrates a sustained growth in both revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA), driven by higher average revenue per user (ARPU), strong market execution, and a strategic focus on network investment. 

GP achieved positive developments in dispute resolutions and constructive dialogues, while strengthening core services to create value amidst external challenges, he added.

“With a continued focus on network expansion and spectrum rollout, we prioritised meeting our customers’ needs through digital-centric innovation and services. This approach establishes the foundation for a future-ready data network, enhancing customer value and solidifying our position as the number one network in the country,” Yasir Azman continued.

The billion-dollar-cap heavyweight multinational accounts for over 8 per cent of the total market cap of the Dhaka bourse, the highest single-company holding in the bourse.

The publicly traded company also reported total revenues of Tk 7,735 crore in the first six months this year, registering a 4.2 per cent year-on-year growth.

The telecom operator in the current year’s second quarter, acquired 11.39 lakh new subscribers, reaching 8.13 crore total subscribers till June 2023.

Out of total GP subscribers, 56.7 per cent or 4.61 crore are internet users. 

Jens Becker, chief financial officer (CFO) at Grameenphone, said, “Our topline growth continued as we wrap up the first half of 2023, supported by growth in data amidst rising inflation and other macroeconomic challenges, which continued as a key driver behind our performance, delivering double digit growth.”

“The company introduced appealing bundle packs throughout the second quarter in both physical and digital channels, which led to a 9.4 per cent increase in bundle revenue from the past quarter,” he added. 

On Tuesday, GP shares were trading at Tk 286.6 each on the DSE trading floor.

Got listed on the DSE in 2009, Grameenphone has a paid-up capital of Tk 1,350 crore.

Its market cap stood at Tk 38,699 crore on the Dhaka bourse on Tuesday.

The telecom company’s annual net profit trickled down by 12.09 per cent year-on-year in 2022, although its revenue grew by 5.12 per cent that year.

The publicly traded company’s profit was Tk 3,009 crore in 2022, down from Tk 3,412 crore the year before. 

Its profit was adversely impacted by foreign exchange losses and a negative verdict in legacy litigation last year, according to the company. The largest market-cap company reported revenues of Tk 15,040 crore last year.

The company had paid a 95 per cent final cash dividend to its shareholders for the year 2022. Moreover, the firm paid a 125 per cent interim cash dividend last year.