Mobile phone operator Grameenphone has reported net profit of Tk1,060 crore in the first half of this year, but decided to distribute about Tk1,283 crore as interim cash dividend.
They made the financial disclosure at a press conference in Dhaka yesterday as they earned a revenue of over Tk5,112 crore, up 7.8% from the same period last year.
“As a major listed company, we have a dividend policy and we are just following it,” Chier Executive Officer Vivek Sood told the Dhaka Tribune after the press conference.
The earnings per share (EPS) of the country’s largest mobile phone operator in the first half of 2014 stood at Tk7.85, but their dividend stands at Tk9.50.
Grameenphone also distributed 28.6% higher dividend than the net profit the company earned in 2013 when they had reported an after tax profit of over Tk1,470 crore and distributed dividend of over Tk1,890 crore.
Mentioning their performance outstanding, the CEO said: “Stable political environment, improving economic activities and Grameenphone’s strong traction in the market contributed to this elevated performance.”
The operator informed their service revenue grew by 7.5% (YoY) along with 14.3% (YoY) growth in devices and other revenues.
The growth is attributed to increased voice outgoing from acquisition, data revenue from 3G as well as 2G, SMS and content services.
Replying to a question, Acting Chief Financial Officer Md Mainur Rahaman Bhuiyan said currently they have 95 lakh active internet users and from data side their revenue growth is 57% while the growth of voice only 4% year to year.
Grameenphone said the growth in interconnection revenue with contribution from both local and international minutes, higher device sales (28%) for enabling the data era, wholesale and financial services also contributed.
Average minute per-uses (AMPU) and average revenue per-users also started recovering as the political situation becoming stable.
In the last quarter of 2013, AMPU stood at 240 minutes that rose up to 250 minutes after the second quarter and that time ARPU was Tk165 which also rose to Tk170 per user.
During the second quarter (April to June), Grameenphone acquired 0.6 million net subscriber addition, taking the year-end subscription base to 49.23 million with 42.1% market share.
They have registered Tk26.2 billion in the second quarter, a 9.5% (YoY) and a 5.1% (QoQ) growth. Net profit after taxes for the first half of 2014 was Tk10.6 billion with 20.7% margin compared to Tk5.1 billion with 10.8% margin of the corresponding period of 2013.
Earnings per share (EPS) for the period stood at Tk7.85 compared to Tk3.78 of corresponding period of 2013.
Grameenphone invested Tk6.5 billion during the first half for 3G rollout in all 64 district headquarters, 2G-coverage as well as capacity increase and other efficiency enhancement initiatives.
