News Column

Grameenphone Ltd 1Q2014: Steady performance with 14% earnings growth

May 8, 2014

ENP Newswire - 08 May 2014

Release date- 06052014 - Grameenphone Ltd. reported revenue of BDT 24.9 billion for the first quarter of 2014, up 6.1% from the same period last year.

In comparison with last quarter of 2013, growth was a healthy 2.6%. The growth was mainly driven by increased voice outgoing from acquisition, data revenue with momentum from 3G, SMS and campaign driven content services. Growth in both local and international interconnection minutes, wholesale and financial services also contributed to this top line.

During the quarter, GP acquired 1.57 million new subscriptions, taking the subscription base to 48.68 million with 42.2% subscription market share. With 16.5% growth in subscriber against industry growth of 15.4%, GP managed to strengthen its leadership position further. GP also experienced encouraging growth in 3G subscribers from last quarter.

'GP managed performance revival during the quarter after the depressed Q4 2013 aided by resumption of economic activities and maintenance of solid traction in the market. We expect to maintain this momentum and drive business further', said Vivek Sood, CEO of Grameenphone Ltd. He added, 'We lived up to our commitment and managed to bring all the 64 district headquarters under 3G coverage. Quarter saw good development in data driven by our efforts to enable and stimulate use for it. Our focus remains in realizing our vision of empowering societies through internet for ALL.'

GP improved its EBITDA by BDT 2.3 Bn, a 20% growth on a year on year basis. EBITDA (before other items) margin for the quarter was 53.7% compared to 47.5% of the same period last year.

Net profit after taxes for the first quarter of 2014 was BDT 5.2 billion with 20.7% margin compared to BDT 4.5 billion with 19.3% margin of the corresponding period of 2013.

Revenue growth and efficiency in opex management with adverse effect from higher income tax expenses contributed to higher profit in the quarter. Earnings per share (EPS) for the period stood at BDT 3.82 compared to BDT 3.36 of corresponding period of 2013. This constitutes a solid 13.7% growth in quarterly earnings.

GP invested BDT 2.8 billion during the quarter for 3G rollout, 2G capacity increase and efficiency enhancement. With this, GP's cumulative investment since inception now stands at BDT 246 billion. Meanwhile, GP, the largest contributor to exchequer paid BDT 10.7 billion to the national exchequer during the quarter in the form of taxes, VAT and duties. This sum up GP's accumulated contribution to the national exchequer to BDT 365 billion since its inception.

Regarding NBR's claim against replacement SIM, the procedure followed was inconsistent with original terms of reference regarding the report prepared by the NBR/LTU committee members and GP's position remains unchanged on the principle issue. 'We are hopeful that NBR and Finance Ministry will find a way to resolve deadlock of this issue', said Vivek Sood. Regarding revision of SIM registration directive, consultation process is going on among BTRC, AMTOB and other relevant stakeholders. In relevance to this, there is optimism over getting access of National Information Database.

Grameenphone conducted its 17th Annual General Meeting on 9 April 2014 maintaining a benchmark of compliance with all regulations. The shareholders approved the financial statements and 140% cash dividend (including 90% interim cash dividend) for the year 2013 among other agenda. It is to be noted that more than 90% of the shareholders with online banking facility received their cash dividend within the following day of AGM.

Corporate Communications

Grameenphone Ltd.

Phone: 9882990

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Source: ENP Newswire

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