Grameenphone Ltd. reported BDT 1,700 crore revenues for the first quarter of 2010 with 127 crores and 8% growth from the first quarter of 2009. Total revenues for the quarter increased by about 31 crores and 1.8% compared to the fourth quarter of 2009, mainly in voice revenues, due to growth in subscription base. Data revenues also contributed to the consistent revenue growth, increased by 65% and 13% from first quarter and fourth quarter of 2009 respectively.

“I am pleased by the results of the first quarter,” said Oddvar Hesjedal, CEO, Grameenphone Ltd., “particularly since this is the first full quarter results for Grameenphone as a publicly listed company.” He added, “We continued with our innovations and offered our valued customers with new products designed as per their needs.” He also noted, “To ensure best network and service for our valued customers we have invested BDT 116 crores during this quarter mainly in capacity and quality of network.”

The company has added 645,000 new subscriptions during the quarter. This addition takes Grameenphone's total subscription base to 23.9 million, serving 44% of the mobile market. Notably, increase in subscription acquisition costs in connection with subsidy on SIM tax, have pushed EBITDA margins down to 55% compared to 59% of same period last year.

Net profit after taxes in this quarter was BDT 316 crores with 18.5% margin, 38% up from 228 crores with 14.5% margin of the same quarter of last year. The increase was mainly driven by revenue growth, continuous cost optimization initiatives even under severe power crisis and lower interest expenses.
 
Grameenphone CEO further points out that the year has had a good start in terms of growth in revenue and net profit. He noted, “SIM tax remains as the main barrier to mobile industry growth, hindering further investment as well as the progress of digitalization of Bangladesh to a great extent.” However, he added, “despite having lower corporate tax rate, Grameenphone has paid BDT 233 crores in corporate taxes during first quarter of this year, which is 106 crore more compared to first quarter of last year.”

Grameenphone, for the first time as a listed company, declared 60% cash dividend for the year 2009 as per the Board approved dividend policy, equivalent to BDT 6 per share, which is subject to approval of the shareholders on the Annual General Meeting to be held on 8 June 2010.

Grameenphone has diversified its business portfolio through formation of a wholly owned subsidiary company “Grameenphone IT Ltd.” to provide IT services and support to Grameenphone and third parties, which has started its commercial operation from 1 April 2010.

Grameenphone has signed infrastructure sharing agreements with Banglalink and Robi (formerly Aktel) during this quarter. While complying with regulatory directives, this will generate more revenue and better return from existing infrastructure and ensure sustainable utilization of national resources.

Grameenphone has launched Investor Relations web portal in its website to establish easy accessibility of relevant information for the valued shareholders, analysts, potential investors and anyone interested. Currently, Grameenphone's shareholding structure stands at 55.8% for Telenor, 34.2% for Grameen Telecom, and 10% for general retail and institutional investors.

Corporate Communication Department
Grameenphone Ltd.
Telephone: 9882990
www.grameenphone.com