Grameenphone posts record high addition of 2.6 million new subscriptions in Q2
Jul 18, 2010
inly in voice revenues due to subscription growth and revenues from sale of GP branded handsets and data cards. Data revenues also contributed to the consistent revenue growth, increased by 68% from the first half of 2009.
“We are delighted to share with our shareholders that GP has delivered a strong revenue and subscription growth in the first half of 2010,” said Raihan Shamsi, Deputy CEO & CFO, Grameenphone Ltd.” He added, “Superior service quality and innovative products & services have given us a competitive edge over the market. He also noted “our rural footprint is now even stronger through our new product‘Baadhon’ bundled with low cost handsets.”
The Company has added record high 2.6 million new subscriptions during the quarter. This addition takes Grameenphone's total subscription base to 26.5 million, serving 44% of the mobile market.
Net profit after taxes for the first half of 2010 was BDT 483 crores with 13% margin compared to BDT 478 crores with 15% margin of the first half of 2009. Despite the revenue growth, the fall in margin was mainly due to heavy subsidy of BDT 327 crores provided by Grameenphone for high subscription acquisition. This has also pushed the EBITDA margins down to 49% for the first half of 2010 compared to 59% of same period of 2009. Raihan Shamsi noted that “We see this dent in profitability by acquiring more subsidized subscriptions as a short-term investment and are hopeful to see better return through revenue generation on a long-term perspective.”
Raihan Shamsi also underscored that “SIM tax, which is limiting the growth of the mobile industry as well as the progress of bridging the digital divide, has been overlooked in the approved National Budget for 2010-11, creating a conflict between industry growth and the dream of Digital Bangladesh”.
Grameenphone contributed BDT 1,814 crores to the national exchequer in first half of 2010 and BDT 16,600 crores since inception. Despite having lower corporate tax rate, Grameenphone has paid BDT 468 crores in corporate taxes during the first half of this year, which was BDT 82 crores more compared to first half of last year.
Grameenphone, for the first time as a listed company, conducted its 13th Annual General Meeting on 8 June 2010 amidst huge participation of the Shareholders and created a benchmark by complying with all applicable regulations, even being the largest corporate house in the country. The shareholders approved the financial statements and 60% cash dividend for the year 2009 among other agenda.