Grameenphone revenues rise in 2012
Dhaka, July 22 (UNB) - Grameenphone Ltd. (GP) reported revenues of Tk 46.4 billion for the first half of 2012, a 7 percent increase from the first half of 2011.
The growth in revenue was mainly from voice, non-voice and roaming services driven by subscription growth. Total revenue for the second quarter of 2012 was Tk 23.2 billion, up by 2 percent from the same period of 2011, according to a press release.
“We are happy to deliver the results for the first half of the year with business performance backed by subscription growth and operational efficiency,” said Tore Johnsen, CEO of Grameenphone.
“In a competitive market, GP continued to be the preferred telecom service provider in the country with its continued focus on ensuring better customer experience,” he said.
Strong retail channel and distribution infrastructure with more than 350,000 points of sales has enabled GP to reach into the deep rural areas from where more than 60 percent of GP’s new customers come onboard.
With 2.8 million net customer additions during the first six months, GP’s subscription base stands at 39.3 million with approximately 42 percent market share at the end of second quarter.
Net profit after taxes for the first half of 2012 was Tk 9.7 billion with 21 percent margin compared to Tk 6.8 billion with 16 percent margin of the first half of 2011.
Higher profit for this period was mainly due to growth in revenues combined with lower selling and distribution cost due to reduced SIM tax and lower network maintenance cost as a result of network modernisation.
EBITDA margin for the first half of 2012 was 53.3 percent, which also has increased by 2.8 percentage points compared to the first half of 2011.
Earnings per share (EPS) for the first half of 2012 stood at Tk 7.16 compared to Tk 5.01 of the same period of 2011. For the second quarter of 2012, EPS was Tk 3.31 compared to Tk 2.89 for the second quarter of 2011.
GP invested Tk 7.5 billion during the first six months of 2012 on its superior network ensuring widest coverage and highest quality to serve the customers across the country. With this, GP’s cumulative investment since inception stands at Tk 178 billion. Meanwhile, GP, the largest taxpayer of the country, paid BDT 27.9 billion to the national exchequer during the first half of 2012, which sums up the accumulated contribution to the national exchequer to BDT 273 billion. On account of corporate tax, GP paid Tk 8.4 billion during the first half of 2012, which was Tk 2.2 billion higher compared to the same period of last year.
The renewal of 2G license and spectrum of GP along with three other mobile operators is still pending before the Court for final verdict on the clarification of rebate mechanism of VAT on license and spectrum fees.
Tore Johnsen commented “we are eager to see amicable resolution of this long pending issue at the earliest possible time for us to have comfort on future investment decisions”.
The Board of Directors has declared interim dividend in cash at the rate of 90 percent of the paid up capital (Tk 9 per share of Tk 10 each) for the year 2012 out of the provisional net profit of the company for the half year ended at June 30, 2012 and retained earnings up to December 31, 2011.
The Shareholders as of the record date of July 31, 2012 will be entitled to this dividend, which will be distributed within the timeframe stipulated by the regulators.
The growth in revenue was mainly from voice, non-voice and roaming services driven by subscription growth. Total revenue for the second quarter of 2012 was Tk 23.2 billion, up by 2 percent from the same period of 2011, according to a press release.
“We are happy to deliver the results for the first half of the year with business performance backed by subscription growth and operational efficiency,” said Tore Johnsen, CEO of Grameenphone.
“In a competitive market, GP continued to be the preferred telecom service provider in the country with its continued focus on ensuring better customer experience,” he said.
Strong retail channel and distribution infrastructure with more than 350,000 points of sales has enabled GP to reach into the deep rural areas from where more than 60 percent of GP’s new customers come onboard.
With 2.8 million net customer additions during the first six months, GP’s subscription base stands at 39.3 million with approximately 42 percent market share at the end of second quarter.
Net profit after taxes for the first half of 2012 was Tk 9.7 billion with 21 percent margin compared to Tk 6.8 billion with 16 percent margin of the first half of 2011.
Higher profit for this period was mainly due to growth in revenues combined with lower selling and distribution cost due to reduced SIM tax and lower network maintenance cost as a result of network modernisation.
EBITDA margin for the first half of 2012 was 53.3 percent, which also has increased by 2.8 percentage points compared to the first half of 2011.
Earnings per share (EPS) for the first half of 2012 stood at Tk 7.16 compared to Tk 5.01 of the same period of 2011. For the second quarter of 2012, EPS was Tk 3.31 compared to Tk 2.89 for the second quarter of 2011.
GP invested Tk 7.5 billion during the first six months of 2012 on its superior network ensuring widest coverage and highest quality to serve the customers across the country. With this, GP’s cumulative investment since inception stands at Tk 178 billion. Meanwhile, GP, the largest taxpayer of the country, paid BDT 27.9 billion to the national exchequer during the first half of 2012, which sums up the accumulated contribution to the national exchequer to BDT 273 billion. On account of corporate tax, GP paid Tk 8.4 billion during the first half of 2012, which was Tk 2.2 billion higher compared to the same period of last year.
The renewal of 2G license and spectrum of GP along with three other mobile operators is still pending before the Court for final verdict on the clarification of rebate mechanism of VAT on license and spectrum fees.
Tore Johnsen commented “we are eager to see amicable resolution of this long pending issue at the earliest possible time for us to have comfort on future investment decisions”.
The Board of Directors has declared interim dividend in cash at the rate of 90 percent of the paid up capital (Tk 9 per share of Tk 10 each) for the year 2012 out of the provisional net profit of the company for the half year ended at June 30, 2012 and retained earnings up to December 31, 2011.
The Shareholders as of the record date of July 31, 2012 will be entitled to this dividend, which will be distributed within the timeframe stipulated by the regulators.
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