Country’s second largest mobile phone operator Banglalink posted a revenue growth of 7% year-on-year, according to a second quarter report of the company.
Banglalink earned Tk1,160 crore in the second quarter of this year which is around Tk100 crore higher compared to the corresponding period of the last year. Banglalink had earned Tk1,130 crore in the first quarter of 2015.
The growth was the outcome of rise in customers base, launch of 3G services and restoration political stability, the company mentioned.
Despite intense competition, Banglalink continues to tap into the mobile data opportunity, providing mobile financial services and other value added services that continually offers new applications to their customers, claimed a report published by the operator’s parent company Vimplecom.
VimpelCom is a joint venture between Norwegian telecom giant Telenor and Russian banking group Alfa. It is the sixth largest mobile operator in the world in terms of customers.
According to Vimpelcom report, customer base was expanded by 8% year-on-year to 32 million due to its strong Net Promoter Scores.
An official of Banglalink told the Dhaka Tribune that if revenue growth continued to increase further, the operator might make profit from the next financial quarter of the current year.
Mobile data revenue growth posted 86% while the strong growth in Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) is 18% year-on-year, he added.
Banglalink witnessed a solid EBITDA margin of 41.9% due to the robust revenue growth and strictly controlled Operational Expenditures (OPEX).
Banglalink has been ranked second among the six mobile operators with an innovative brand for the youth segment.
The operator also continues to focus on improving its 2G and 3G network coverage, delivering the best value for its customers.
The political environment in the country improved in the second quarter compared to the first quarter of the current year with significantly fewer days of strikes.
There were several regulatory changes in the quarter. The SIM tax was reduced to Tk100 from Tk300 while a 3% supplementary duty on mobile usage was introduced in June 2015.
Banglalink continues to successfully execute on its strategy. Firstly, the company focused on customer acquisition through attractive simple offers that enhanced price perception. Secondly, Banglalink focused on customer re-activation promotions that stimulated data usage.
In September 2004, Orascom Telecom Holdings purchased 100% of the shares of Sheba Telecom (Pvt.) Limited (Sheba). It was acquired for US$60m.
Sheba had a base of 59,000 users, of whom 49,000 were regular when it was sold. Afterward it was re-branded and launched its services under the “Banglalink” brand on February 10, 2005. Banglalink’s license is a nationwide 15-year GSM license and will expire in November 2011.
In March 2008, Sheba Telecom (Pvt.) Limited changed its name as Orascom Telecom Bangladesh Limited after its parent company’s name. Amsterdam-based VimpelCom has invested around $600m in Banglalink since 2011 when it acquired a majority stake in Orascom Telecom.
