GP net profit falls by 16pc despite higher revenue

The net profit of the country's top telecom operator Grameenphone (GP) slumped by 16 per cent in 2013 despite an increase in its revenue earnings and a wider base of subscribers compared to that in the last year.
The operator witnessed a net profit of Tk 14.7 billion for the calendar year (CY) 2013 against Tk 17.5 billion in 2012. However, the revenue earnings increased to Tk 96.6 billion from Tk 91.9 billion.
The company netted in 7.1 million new subscribers in the year against 3.5 million in 2012. The total clientele base reached 47.1 million until December, 2013.
The mobile phone service operator revealed the business performance in 2013 at a press conference in the city Tuesday.
The company noted: "Lower net profit for this period was mainly due to the higher corporate tax payment along with retrospective effect of 2012, 2G/3G spectrum amortisation and higher interest expenses partly offset by gain on sale of shares in GPIT and foreign exchange."
It also pointed out that the Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) margin for the year was 51.3 per cent, down from 53.1 per cent in 2012.
Earnings per share (EPS) for 2013 stood at Tk 10.89 compared to Tk 12.96 in 2012. This prompted 16 per cent drop in earnings. For the fourth quarter of 2013, the EPS was Tk 2.95 compared to Tk 3.42 for the corresponding period of 2012.
The operator also informed the media that it had invested Tk 12.7 billion during 2013 for faster 3G or third generation mobile network rollout, 2G capacity-increase and efficiency-enhancement.
Talking about the revenue growth, a GP spokesperson said that his company had shown 5.1 per cent revenue growth, up from that in last year.  
"This growth momentum has been achieved amid disruptions and lower economic activities in the run-up to the last national elections. The growth is accredited by new customer acquisitions, usage increase and competitive value for money market offerings. Higher device sales with the advent of 3G era, growth in both local and international interconnection minutes, wholesale and financial services also contributed," he said.     
GP Chief Executive Officer (CEO) Vivek Sood said: "It is my immense pleasure to inform our honorable shareholders that 2013 had been a turnaround year for GP with 3G spectrum acquisition, restored revenue growth momentum, revitalised market machineries and partnering with Accenture to gain competitive advantage in IT."
He added: "During the year, we performed as activists of challenges amid adverse externalities, innovated customer-centric offers and steered the business in the right direction towards enhancing value for the shareholders."
The 3G coverage of the operator reached seven divisional headquarters at the end of December last via commissioning of 1,074 sites.
The GP would be able to provide full benefit of 3G connectivity to its customers, Chief Technology Officer (CTO) Tanveer Mohammad said.
Regarding the National Board of Revenue's (NBR's) claim against replacement SIM, the company mentioned that the process of the final report prepared by the NBR/LTU committee members deviated from the original agreement. The industry was well aligned in this matter and was taking it up with relevant stakeholders for an amicable solution.
The GP Board of Directors has recommended final dividend for the year 2013 in cash at the rate of 50 per cent of the paid-up capital (i.e. Tk 5 per share of Tk 10 each) based on the decision taken at the board meeting held on Monday.