Mobile phone operator Grameenphone has achieved its targeted revenue of Tk10,000 crore in 2014.
Data showed the total revenue in the year amounted to Tk10,270 crore, which was 6.3% higher than the last year.
The market leader has disclosed annual financial figures yesterday at a press conference in the city, where its newly appointed chief executive officer Rajeev Sethi said, “Last year (2014) we have touched several milestones and out of them the most significant one is crossing the hundred billion taka revenue mark.”
Rajeev Sethi also said they had now 50m active subscribers after introducing “some attractive services.”
Grameenphone had targeted to earn Tk10,000 crore revenue in 2014 as its revenue was Tk9,662 crore in 2013 and Tk9,190 crore in 2012
“During the year, we managed to consolidate our position as the leading mobile operator and have taken ambitions to excel further in 2015,” said Grameenphone CEO.
He added: “Structured approach of building on our strengths, applying the right mindset and executing our strategy will further contribute to adding value for our shareholders.”
Grameenphone boss expressed his satisfaction over data revenue growth and said one-third of total 2014 revenue came from the data sector.
According to the Dhaka Stock Exchange, among the listed firms, only British American Tobacco Company Ltd (BATBC) has generated a yearly revenue of that amount.
In 2013 BATBC reported Tk10,968 crore revenue. And after that Grameenphone was the second company having generated more than Tk10,000 crore in a calender year.
The operator said its service revenue grew 5.9% year-on-year along with 14.1% growth in customer equipment and other revenues.
Growth in service revenue was mainly driven by data and VAS. However, the service revenue growth faced some headwind from reduction in international call termination rates.
During the year, Grameenphone won 4.4m new subscriptions, taking the year-end subscription base to 51.5m. With this 9.3% growth in subscribers against industry growth of 5.8%, the operator managed to improve its market share by 1.4% to 42.8%.
Strong and vibrant presence in the market amidst competitive environment contributed to this position.
The market leader also reported a net profit after taxes of Tk1,980 crore last year with 19.3% margin compared to Tk1,470 crore with 15.2% margin of 2013.
The operator’s earnings per share (EPS) for 2014 stood at TK14.67 compared to Tk10.89 in 2013. This prompted a 34.7% growth in earnings, however, normalising GPIT sale gain on 1 September, 2013 and increasing corporate tax rate by 5% and the revised rate standing at a healthy 12%.
Grameenphone board has recommended final dividend at 160% for the concluded year (Tk16 per share from Tk10).
As of the record date February 18, the shareholders will be entitled for the final dividend, which is subject to the shareholders’ approval at the AGM to be held on 21 April.
The operator said they had invested Tk1,520 crore during the period for 3G roll-out throughout the country, 2G coverage as well as capacity increase and other efficiency enhancement initiatives.
Grameenphone CEO said the current political situation had a significant impact on revenue earnings.
“As the non-stop blockade has an impact on the overall economy, it will affect our customers income and the operator’s revenue as a result,” Rajeev Sethi said.
He said they wanted a level-playing field for upcoming spectrum auction for 1800 band which is set to be held soon.
BTRC will not allow Grameenphone to participate in the coming auction as the regulator argues the operator has already more spectrum than others. BTRC said Grameenphone can buy the unsold spectrum, if any.
But Grameenphone said it needed more spectrum as its subscriber base is larger than others.
Rajeev Sethi said if they were not allowed to participate, they would rethink about auction participation.
