Grameenphone reports Q1 profit decline, sees growth ahead

Grameenphone's profit dropped 3.8 per cent year-on-year to Tk 7.80 billion in the first quarter through March as it poured cash into its networks to broaden and strengthen connectivity.
During the time, its finance expense jumped 65 per cent to Tk 1.24 billion due to interest payments on leased-out properties.
The country's largest mobile phone operator invested Tk 6.90 billion in the quarter, about 76 per cent higher than in the same period a year ago, on building 4G network, coverage expansion and spectrum deployment, according to a press release issued on Wednesday.
It doubled fiber connectivity and rolled out over 20,000 total sites, said Yasir Azman, chief executive officer of Grameenphone.
"This lays the foundation for a future-ready data network that provides seamless connectivity across Bangladesh, delivering a superior network experience for the customers and building the number one network in the country," he said.
In the three months to March, Grameenphone's revenue grew 2.8 per cent to Tk 37.35 billion, driven by a 2.7 per cent increase in daily subscription and traffic revenue.
Year-on-year data revenue rose 14.2 per cent, which was the key factor behind the growth in subscription and traffic revenue, said Jens Becker, chief financial officer of Grameenphone, in its earnings note.
The mobile phone operator added 1 million new subscribers, reaching 80.1 million total subscribers at the end of the first quarter, helped by the withdrawal of the ban on sales of SIM cards.
The regulatory ban was removed after repeated evaluation of GP's network strength, said Mr Azman.
Earlier in June last year, Bangladesh Telecommunication Regulatory Commission (BTRC) imposed the restriction for what it said was poor service quality.
"With the resumption of SIM sales our subscriber base has returned to growth," said Mr Azman, adding that "Our focus on continuous network investment has resulted in significant progress through spectrum and site rollout."
At the time of the country's largest spectrum auction in March last year, the market leader Grameenphone brought the highest allowable 60 MHz of 2.6 GHz spectrum at Tk 33.61 billion.
It continued investments in network strengthening, innovation and modernisation.
Grameenphone has undertaken significant efforts to revamp the product portfolio to make it simpler and more effective for customers, said the company chief.
"Our ongoing modernisation and transformation journey is starting to show results, benefiting us in building a future-fit company with the right mix of competency, capabilities, tools and partnerships, and will continue to serve as an enabler for our future growth," he added.
Grameenphone's annual profit was Tk 30.1 billion in 2022, the lowest in five years, as it was hit hard by foreign exchange loss and the regulatory ban on SIM card sales.
The company disbursed 220 per cent cash dividend for 2022.
It is the largest stock when market cap is considered. It has been languishing at the floor price of Tk 286.6 since September 22 last year.
"Stepping into 2023, we leave a milestone year behind with Grameenphone celebrating its 25th year of service to its customers and empowering societies in Bangladesh," said Mr Azman.

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