27.9% increase in data revenue remains key contributing factor
Banglalink, a leading telecom operator in Bangladesh, has incurred a total revenue of Tk 1,150 crore in the second quarter of 2019, which is a growth of 5.4% from the first quarter of the year. Most of this growth has been due to the success of their data revenue.
According to a VEON report published on Thursday, Banglalink’s total revenue was Tk1,090 crore in the previous quarter and this quarter’s growth is driven by an acceleration of mobile service revenue, increasing by 7.8% year on year (YoY) to Tk1,130 crore.
Data revenue increased by 27.9% to Tk 23 lakh, which was Tk 18 lakh in the previous quarter, driven by increased smartphone penetration and doubled data usage YoY to 1,250 MB, along with 9.8% YoY growth in active data users, the report showed.
The increase in revenue represents a continuation of the positive trend seen in the first quarter in 2019, despite the gap in Banglalink’s 3G network coverage in comparison to its competitors, said the report.
Service revenue also increased by 2.5% quarter on quarter (QoQ) in the second quarter 2019. The revenue increase was mainly driven by a continued improvement in data revenue, following enhanced network availability, with the continued expansion of Banglalink’s coverage.
“Following a good start in the first quarter of current year, we have once again registered a solid performance in second quarter of 2019. Our improvements are highlighted by 5.4% YoY total revenue growth and a 7.8% YoY service revenue growth during the second quarter,” said Erik Aas, Chief Executive Officer of Banglalink.
“The data revenue increased by 28% YoY, which reflects our gradual emergence as a prominent digital player in the market,” he added.
Erik said Banglalink’s YoY customer-base grew by 3.1% in this quarter as well. They are confident of keeping the up this momentum throughout the rest of the year.
However, as the SIM tax, the supplementary duty on voice and data services, and the minimum tax on a mobile operator’s turnover have been increased in the recent budget, it will be challenging for them to maintain the expected growth rate, he added.