2014 for Grameenphone Ltd. at a glance
- BDT 102.7 billion revenues, 6.3% annual growth
- 51.5 million subscription base with 42.8% subscription market share
- Net profit after taxes BDT 19.8 billion with 19.3% margin and BDT 14.67 EPS
- BDT 15.2 billion capex mainly for network quality and coverage enhancement
- Final dividend recommendation of 65% of the paid up capital
Grameenphone Ltd. reported revenue of BDT 102.7 billion for 2014, up 6.3% from last year. Service revenue grew by 5.9% (YoY) along with 14.1% (YoY) growth in customer equipment and other revenues. Growth in service revenue was mainly driven by data and VAS. However, service revenue growth faced some headwind from reduction in international call termination rates.
During the year, GP acquired 4.4 million new subscriptions, taking the year-end subscription base to 51.5 million. With this 9.3% growth in subscriber against industry growth of 5.8%, GP managed to improve its market share by 1.4 percentage point to 42.8%. Strong and vibrant presence in the market amidst competitive environment contributed to this position.
“It is my immense pleasure to inform our honorable shareholders that in 2014 we achieved two monumental milestones of crossing 50 Mn subscriber base and BDT 100 Bn revenue for the company”, said Rajeev Sethi, newly appointed CEO of Grameenphone Ltd. He added, “During the year, we managed to consolidate our position as the leading mobile operator and have taken ambitions to excel further in 2015. Structured approach of building on our strengths, applying the right mindset and executing our strategy will further contribute to adding value for our shareholders.”
Net profit after taxes for 2014 was BDT 19.8 billion with 19.3% margin compared to BDT 14.7 billion with 15.2% margin of 2013. EBITDA grew by 11.2%, improving the margin to 53% from 50.7% of 2013. Earnings per share (EPS) for 2014 stood at BDT 14.67 compared to BDT 10.89 of 2013. This prompted a 34.7% growth in earnings, however normalizing GPIT sale gain on 1 September 2013 and increase of corporate tax rate by 5%, the revised rate stands at a healthy 12%.
GP invested BDT 15.2 billion during the period for fast track 3G rollout throughout the country, 2G coverage as well as capacity increase and other efficiency enhancement initiatives. Meanwhile, GP, the largest contributor to exchequer paid BDT 58.9 billion, comprising 57.4% of total revenue to the national exchequer during the period in the form of taxes, VAT, duties and license fees. From cultural enrichment to facilitating digital entrepreneurship and standing beside the underprivileged in society, Grameenphone has also made significant contribution in 2014 towards using connectivity to enlighten and empower society and prepare the nation’s youth for a better tomorrow.
The Board of Directors of Grameenphone Ltd. have recommended final dividend for the year 2014 in cash at the rate of 65% of the paid up capital (i.e. BDT 6.5 per share of BDT 10 each) based on the decision taken at the Board Meeting held on 8 February 2015. With this, the total cash dividend stands at 160% of paid up capital (i.e. BDT 16 per share of BDT 10 each) for the year 2014 (including 95% interim cash dividend i.e. BDT 9.5 per share). The Shareholders as of the record date of 18 February 2015 will be entitled for this final dividend, which is subject to the Shareholders’ approval at the 18th AGM to be held on 21 April 2015.