GP sees strong performance with solid earnings growth

Grameenphone Ltd. reported revenue of BDT 51.1 billion for the first half of 2014, a 7.8 per cent up from the same period of last year. Service revenue grew 7.5 per cent (YoY) along with 14.3 per cent (YoY) growth in device and other revenues. The growth is accredited by increased voice outgoing from acquisition, data revenue from 3G as well as 2G, SMS and content services. Growth in interconnection revenue with contribution from both local and international minutes, higher device sales (28 per cent) for enabling the data era, wholesale and financial services also contributed in the growth. During the quarter, GP acquired 0.6 million net subscriber addition, taking the year-end subscription base to 49.23 million with 42.1 per cent (approx.) subscription market share. With 12 per cent growth in subscriber against industry growth of 11.3 per cent (approx.), GP managed to surpass industry retaining the leadership position. Quarterly revenue of BDT 26.2 billion registered a 9.5 per cent (YoY) and a 5.1 per cent (QoQ) growth. During the quarter, GP was active in offering various innovative value-for-money products and services to enrich its customer experience. GP experienced growth in data usage driven by encouraging growth in 3G and 2G subscriber base. GP is now well poised to meet its ambition of Internet for ALL, while 16 per cent of subscribers used internet in the last one month.  “I am delighted to inform our honorable shareholders that GP managed another growth quarter as indicated last time, giving the first half a solid base to finish 2014 with a healthy performance. Stable political environment, improving economic activities and GP’s strong traction in the market contributed to this elevated performance. Its strategic ambition of internet for ALL and enabling position on MFS has been well executed. However, industry is challenged by high VOIP traffic contributed by some operator SIMs”, Vivek Sood, CEO of Grameenphone Ltd said in a press conference Tuesday. He added, “I am also happy to announce that GP Board of Directors declared interim dividend at the rate of 95% of paid up capital. This reinforces GP’s commitment towards creating value for shareholders.”