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Grameenphone records healthy growth in first half of 2018

  • Published at 06:51 pm July 16th, 2018
  • Last updated at 07:21 pm July 16th, 2018
Grameenphone CFO Karl Erik Broten and CEO Michael Patrick Foley Courtesy

'The first half of 2018 was challenging due to adverse effects of bad weather and ongoing competition intensity. Despite this, we were able to report healthy growth and margins'

Grameenphone, the largest mobile phone operator in Bangladesh, has registered nearly 27% growth in the first half of 2018.

Meanwhile, the company has recommended 125% interim cash dividend for its shareholders.

According the audited financial statements for January-June 2018, Grameenphone has earned TK17,198,724 after tax, up by 26.9% as compared to the Tk14,481,614 earned over the same period last year.

The Earnings per Share (EPS) for January-June of 2018 stood at Tk 12.74, as compared to Tk10.72 in the first half of 2017. 

The Dhaka Stock Exchange (DSE) website on Monday said the company's board of directors had announced dividends after reviewing the audited financial statements of the company for the second quarter, ended on June 30, 2018.

The company has experienced “healthy growth” in the number of subscribers this year, Grameenphone said in a statement on Monday. 

The first half of 2018 was challenging due to adverse effects of bad weather and ongoing competition intensity. Despite this, we were able to report healthy growth and margins,” said Michael Patrick Foley, CEO of Grameenphone. 

 “We crossed the 2 million 4G subscriber milestone and our network rollout as well as modernization plan is on track to deliver superior customer experience. Our consolidated voice and competitive data offers are creating positive traction in the market,” he added.

Grameenphone ended the first half of 2018 with 69.2 million active subscribers, registering a 5.9% growth from the end of last year. Of the total number of subscribers, 34.5 million or 49.9% are using Grameenphone internet services.

Grameenphone reported revenue of Tk63.8 million in the first half of 2018, up by 1.2% from the same period last year. Data revenue grew by 21.1%, while voice revenue grew by 2.4%. After normalizing for accounting practice changes introduced in the last quarter, total revenue growth stood at 4.6%.

Grameenphone recently invested Tk25.4 billion for 4G licensing, spectrum, tech-neutrality conversion fees and network coverage, as well as capacity enhancement. During the quarter, the company contributed Tk47.9 billion or 74.7% of total revenue to the national exchequer, in the form of taxes, VAT, duties, spectrum assignment, neutrality and license fees.

“Grameenphone reported healthy EBITDA (Earnings before interest, taxes, depreciation and amortization) uplift and margin during the period. Amidst a number of challenges, we were able to end the 1st half of 2018 on a positive note,” said Karl Erik Broten, chief financial officer of Grameenphone.

 “I am also happy to announce that the Grameenphone Board of Directors has declared interim dividend at the rate of 125% of paid up capital,” he added.

The company has set August 5, 2018 as the date for entitlement of interim dividend. Grameenphone shares on the DSE closed at Tk388 yesterday.