First nine months of 2014 for Grameenphone Ltd. at a glance
- BDT 76.74 billion revenues, 6.1% year on year growth
- 50.29 million subscriber base, 9.2% year on year growth
- Net profit after taxes BDT 15.9 billion with 20.7% margin and BDT 11.79 EPS
- BDT 9.3 billion capex mainly for network quality and coverage enhancement
Grameenphone Ltd. reported revenue of BDT 76.74 billion for the first 9 months of 2014, up 6.10% from the same period last year. Service revenue grew by 5.8% (YoY) along with 13.2% (YoY) growth in device and other revenues. As far as 3rd quarter 2014 is concerned, the growth was subdued, managing 2.4% from last year. The 9 months growth is accredited to increased voice, data, SMS and content services. Growth in interconnection revenue, higher device sales, wholesale and financial services also contributed. However, service revenue growth was subdued mainly due to adverse impact of FIFA world cup and inclement weather during the later part of the period. International interconnection revenue also suffered with 50% cut in call termination rates with effect from 19 September 2014.
During the period, GP acquired 4.25 million net subscriber, taking the 3rd quarter-end subscription base to 50.29 million with 42.4% (approx.) subscription market share. With 9.2% growth in subscriber against industry growth of 7.3% (approx.), GP managed to gain market share and reinforce its leadership position. GP was also active in securing 20% internet penetration with 10.2 million subscribers. Their corresponding usage growth was encouraging, paving the way towards its ambition of Internet for ALL.
“I am excited to inform our honorable shareholders that GP managed to cross a monumental milestone of 50 million subscriber base through its enduring commitment of offering innovative and customer centric products and services. This was also possible in connivance with our countrywide robust and reliable network built over the years”, said Vivek Sood, CEO of Grameenphone Ltd. He added, “Competition has been intense throughout the period with some adverse externalities, which hampered the growth trajectory in some instances. Moving ahead, our segmented attitude towards the market and on the ground execution will help GP perform even better and create value for shareholders.”
Net profit after taxes for the first 9 months of 2014 was BDT 15.92 billion with 20.75% margin compared to BDT 10.71 billion with 14.81% margin of the corresponding period of 2013. Revenue growth and efficiency in operating expenditure helped to achieve this feat. Normalizing one-off tax impact and GPIT gain, NPAT growth was 16.33%. Earnings per share (EPS) for the period stood at BDT 11.79 compared to BDT 7.93 of corresponding period of 2013.
GP invested BDT 9.29 billion during the period for fast track 3G rollout in all 64 district headquarters, 2G coverage as well as capacity increase and other efficiency enhancement initiatives. Meanwhile, GP, the largest contributor to exchequer paid BDT 46.48 billion, comprising 61% of total revenue to the national exchequer during the period in the form of taxes, VAT, duties and license fees.
Grameenphone CEO Vivek Sood, CFO Dilip Pal and CMO Allan Bonke were present on the press conference.