Grameenphone (GP) rose more than 1 per cent to Tk 235 per share on the Dhaka bourse on Thursday after it reported a 72 per cent year-on-year profit growth for the first quarter this year.
The leading telecom operator secured a quarterly profit of Tk 13.4 billion in January-March this year, highest since its listing on the stock exchanges, according to its financial statements.
Its revenue also grew 5.3 per cent year-on-year to Tk 39.33 billion in the quarter.
Following the impressive financial performance, investors showed buying appetite for GP shares, although the overall stock market remained bearish.
As one of the best performing blue-chip stocks, GP was deemed to have come down to a rational price level after 18 per cent correction since the removal of floor price.
Some 1,554 trades were executed with a total of 0.19 million shares of GP changing hands, leading to a turnover of Tk 46.54 million on Thursday.
"Macroeconomic headwinds continued to challenge us, but we remained focused on our strategy and forged ahead with our investment plans to support our growth opportunities, strengthen our partnerships, all of which contributed to the great results," said Yasir Azman, chief executive officer of Grameenphone, in a press statement.
GP's larger market share (almost 50%), innovation, and efficient control of operating expenses helped maintain a healthy profit. GP adopted innovative marketing strategies and provided GP-to-GP offers, attaining the position of the market leader.
GP acquired 1 million new subscribers, reaching 83 million at the end of March this year while 55.8 per cent or 46.3 million subscribers used internet services.
GP continued to deliver solid financial performance in the 12th consecutive quarter of growth in revenue and EBITDA (earnings before interest, taxes, depreciation and amortization) despite macroeconomic challenges, reads the statement.
The EBITDA for the quarter grew by 5 per cent year-on-year with a margin of 60.80 per cent.
The telecom operator invested Tk 7.20 billion in the first quarter, focusing mainly on 4G network, fiber connectivity expansion, along with 2600MHz spectrum deployment.
GP secured a double-digit data revenue growth for six consecutive quarters.
To enhance the network capabilities, GP rolled out 500 new 4G sites, of which 400 were set up in the last three months through March.
GP's 4G sites reached more than 21,700 with 97.9 per cent 4G population coverage.
"Driven by our commitment to creating a Smart Bangladesh, we inaugurated the first "Tier III Standard Data Center," in Sylhet - a technological marvel that can set new benchmarks of the network."
GP paid Tk 26 billion, equivalent to 65 per cent of its total revenue, to the national exchequer in the form of taxes, VAT, duties, fees, and spectrum assignment fees in the first quarter this year.
Annual performance
GP posted a 10 per cent growth in profit year-on-year to Tk 33.06 billion in 2023, supported by higher revenue generated from increased voice only and data only services.
Despite higher earnings, GP declared a 125 per cent cash dividend, lowest in 13 years while its dividend payout ratio was the lowest in four years as the telecom operator had to spend more on dispute resolutions.
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