'Continued growth in data and users reinforces our focus on strengthening our network with planned investment'
Grameenphone Limited, the largest market-cap company of the country’s prime bourse, has posted a 25% rise in net profit after taxes in the third quarter (Jul-Sep) of 2020 compared to the same period of previous year.
The company made the official disclosure on the Dhaka Stock Exchange (DSE) website on Monday.
The mobile operator reported total revenues of Tk35.6 billion for the third quarter of 2020, registering a 2.8% de-growth from the same period last year. However, net profit after taxes for the third quarter was Tk8.9 billion, with 25% margin.
GP’s earnings per share (EPS) for the period stood at Tk6.59, as against Tk5.38 for the same period of 2019.
Meanwhile, the company’s EPS was Tk19.89 for nine months of January-September 2020 as against Tk18.75 for January-September 2019.
“Grameenphone is reporting a recovering topline in the third quarter of 2020 as the economic activity of Bangladesh gradually resumes following the initial months of COVID-19 pandemic. We also experienced adverse impact from challenging weather conditions in this quarter,” Grameenphone CEO Yasir Azman said in an official statement regarding the earnings.
“Our network rollout significantly increased in the third quarter allowing us to expand our 4G footprint. Through strong operational execution, we focused on driving subscriber net ads and 4G conversion, leading to a 4.1% increase in our total customers from the previous quarter” he said.
“The third quarter of 2020 brought some additional challenges due to record rainfall and floods in parts of the country. After reporting a de-growth of 8.1% in the previous quarter, we see promising recovery in the third quarter with a de-growth of 2.8% year over year in total revenues along with growth in both data revenue and data users. We also registered healthy growth in digital recharge volume YoY” said Jens Becker, chief financial officer of Grameenphone.
“Continued growth in data and users reinforces our focus on strengthening our network with planned investment,” he added.
The operator ended the quarter with 77.6 million users, of which 54.1%, or 42 million, are internet customers.
The GP was listed on the Dhaka Stock Exchange in 2009. The company’s paid-up capital is Tk1,350 crore.
The sponsor-directors own 90% stake in the company, while institutional investors own 4.28%, foreign investors 3.41% and the general public 2.31% as of September 30, 2020.