GP revenue rises 6.10pc till Sept, 2014

Grameenphone Limited today reported revenue of BDT 76.74 billion for the first 9 months of 2014, a 6.10 per cent up from the corresponding period of last year. Service revenue grew by 5.8 per cent (YoY) along with 13.2 per cent (YoY) growth in device and other revenues. As far as 3rd quarter 2014 is concerned, the growth was subdued, managing 2.4 per cent from last year. The 9 months growth is accredited to increased voice, data, SMS and content services. Growth in interconnection revenue, higher device sales, wholesale and financial services also contributed. However, service revenue growth was subdued mainly due to adverse impact of FIFA world cup and inclement weather during the later part of the period. International interconnection revenue also suffered with 50 per cent cut in call termination rates with effect from 19 September 2014. “I am excited to inform our honorable shareholders that GP managed to cross a monumental milestone of 50 million subscriber base through its enduring commitment of offering innovative and customer centric products and services. This was also possible in connivance with our countrywide robust and reliable network built over the years”, said Vivek Sood, CEO of Grameenphone Ltd in a press conference today (Wednesday). He added, “Competition has been intense throughout the period with some adverse externalities, which hampered the growth trajectory in some instances. Moving ahead, our segmented attitude towards the market and on the ground execution will help GP perform even better and create value for shareholders.” During the period, GP acquired 4.25 million net subscriber, taking the 3rd quarter-end subscription base to 50.29 million with 42.4 per cent (approx.) subscription market share. With 9.2 per cent growth in subscriber against industry growth of 7.3 per cent (approx.), GP managed to gain market share and reinforce its leadership position. GP was also active in securing 20 per cent internet penetration with 10.2 million subscribers. Their corresponding usage growth was encouraging, paving the way towards its ambition of Internet for ALL. Net profit after taxes for the first 9 months of 2014 was BDT 15.92 billion with 20.75 per cent margin compared to BDT 10.71 billion with 14.81 per cent margin of the corresponding period of 2013. Revenue growth and efficiency in operating expenditure helped to achieve this feat. Normalizing one-off tax impact and GPIT gain, NPAT growth was 16.33 per cent. Earnings per share (EPS) for the period stood at BDT 11.79 compared to BDT 7.93 of corresponding period of 2013.  Grameenphone CFO Dilip Pal and CMO Allan Bonke were also present in the press conference, said a statement.