Grameenphone Ltd. reported BDT 2,322 crore revenues for the first quarter of 2012 with 12.3% increase from same period of 2011. The growth was mainly from voice as well as interconnection revenues driven by subscription growth, revenues from non voice services, roaming and infrastructure sharing.

“I am delighted to present the first quarter results to our Shareholders, where GP maintained its revenue growth momentum and profitability”, said Tore Johnsen, CEO of Grameenphone Ltd. He added, “Customer centric telecommunication solutions have enabled GP to attain fair portion of the market growth amidst tough competition”.

Wide range of customized service offerings like eCare, enhanced product features, promotions for internet usage and wider distribution network has led Grameenphone to acquire 11 lakh new subscribers during the quarter and conclude with 3.76 crore subscribers with approximately 42% market share.

In December of 2011, GP completed its network modernization through network swap and continued with investing in network quality enhancements throughout the quarter reflecting GP's commitment towards customers to stay close and enjoy better telecom services.

Net profit after taxes for the first quarter of 2012 was BDT 520 crores with 22.4% margin compared to BDT 287 crores with 13.9% margin of the first quarter of 2011. Higher profit for this period was mainly due to revenue growth, efficient cost management and reduced depreciation expenses. EBITDA margin for the first quarter of 2012 was 55.1%, which also has increased by 7.3 percentage points compared to 47.8% of the same period last year. As a result, Earnings per share (EPS) for the first quarter of 2012 stood at BDT 3.85 compared to BDT 2.12 of the first quarter of 2011.

GP invested BDT 373 crores during first quarter of 2012 for network capacity and quality enhancement. With this, GP's cumulative investment since inception now stands at BDT 17,465 crores. Meanwhile, GP, the largest taxpayer of the country, paid BDT 1,121 crores to the national exchequer during the first quarter of 2012 in the form of taxes, VAT and duties. This sum up GP's accumulated contribution to the national exchequer to BDT 25,638 crores since its inception. 

On 13 February 2012, the High Court has directed Grameenphone to add 15% VAT amount to the Bangladesh Telecom Regulatory Commission (BTRC) receivables and pay an additional 15% VAT to the National Board of Revenue (NBR). The Court has allowed Grameenphone to obtain rebate on this VAT thereby, limiting Grameenphone's total license renewal cost to 100%.

As the proposed rebate mechanism does not seem workable under present VAT scheme, Grameenphone has filed a petition with the Appellate Division seeking clarification on VAT deduction mechanism related to 2G License renewal fees, particularly for the rebate on the 15% VAT amount payable to the NBR. The hearing before the Court is yet to be scheduled.

Grameenphone conducted its 15th Annual General Meeting on 10 April 2012 amidst huge participation of the shareholders and once again, maintained a benchmark of compliance with all regulations. The shareholders approved the financial statements and 205% cash dividend (including 140% interim cash dividend) for the year 2011 among other agenda. It is to be noted that more than 61,000 of the shareholders with online banking facility received their cash dividend within 48 hours after the completion of the meeting – as a part of the company's commitment to its shareholders for fast track dividend payment.

Corporate Communications
Grameenphone Ltd.
Phone: 9882990