Grameenphone's revenue dropped 3.8 per cent year-on-year to Tk 39.5 billion in the third quarter this year due to a sharp fall in data revenue amid July unrest, internet shutdown and unprecedented floods in several regions.
GP reported a degrowth of 17.1 per cent year-on-year in data revenue to Tk 11 billion in the July-September quarter.
The leading telecom operator's net profit, however, grew 1 per cent year-on-year to Tk 7.6 billion in the quarter through September, supported by operating efficiency, according to its financial statement published on Monday.
"This quarter has been particularly challenging for us, testing our resilience across various fronts -- economically, politically, and through natural disasters," said Yasir Azman, chief executive officer of Grameenphone, in the statement.
Internet users faced trouble from July 14 to August 5, while the internet was completely shut for more than five days during the time. Many social media platforms remained blocked.
Moreover, severe floods in more than 12 districts in the northeastern and southeastern part of Bangladesh caused disruptions to telecom services in late August.
"Despite these difficulties, we have achieved well-managed financial and operational trends, while maintaining our investment in strategic growth areas," said the GP chief.
The market leader's total subscriber base stood at 84.6 million at the end of the third quarter, of whom 58.3 per cent use internet services.
In the third quarter, a notable year-on-year increase in 4G users by 5.6 million or 15 per cent has been registered with total data users reaching to 49.3 million, the highest 4G users in the industry.
Unrest had a significant impact on data usage as the average data use per user came down.
"The third quarter began with a positive trend, but several days of unrest and internet shutdowns, along with unprecedented floods, have significantly impacted the economy and our business," said Otto Risbakk, chief financial officer of Grameenphone.
Despite challenges, GP secured earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 58.7 percent and an operating cash flow margin of nearly 49 per cent during the quarter.
EBITDA is a measure of profitability that shows earnings before interest, taxes, depreciation, and amortization.
"Thanks to strong cash flow and solid balance sheet, we are able to adopt a long-term perspective regarding investments and innovation, while also maintaining an attractive shareholder remuneration policy," said the GP CFO.
GP reported that foreign exchange losses jumped 16 per cent year-on-year to Tk 510 million in the third quarter while income tax payment fell 30 per cent to Tk 5.38 billion due to deferred tax adjustment.
GP invested Tk 3.9 billion for better network coverage and expansion in the quarter.
GP paid Tk 32.3 billion to the government in the quarter, equivalent to 82 per cent of its total revenue, in the form of taxes, VAT, duties, and license and spectrum assignment fees.
The company's nine-month profit grew more than 8.6 per cent year-on-year to Tk 29.55 billion in January-September this year. Its revenue registered a 2.24 per cent growth to Tk 121 billion during the period, compared to the same period a year earlier.
Stock performance
Having remained stuck on the floor at Tk 286.7 per share for more than 18 months, GP fell gradually to Tk 222.2 per share on the Dhaka Stock Exchange by June since the withdrawal of the price restriction at the end of February this year.
After the fall of the Hasina-led government on August 5, the stock surged 40 per cent in 10 days to reach Tk 387 per share.
Since then, GP declined and closed at Tk 304 per share on Monday as political uncertainties have extinguished investor enthusiasm that sparked following the fall of the previous regime. The stock slightly rose to Tk 311.2 per share on Tuesday.
GP is the largest company in terms of market capitalization. Its current market value of Tk 412 billion accounts for 12 per cent of the Dhaka Stock Exchange.
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