Grameenphone Ltd. reported BDT 5,515 crore revenues for the first nine months of 2010 with 14% increase from the same period of 2009. Total revenue for the third quarter of 2010 was BDT 1,934 crores, up by 17% from the third quarter of 2009. The growth in revenue was mainly in voice as well as interconnection revenues due to subscription growth. Data revenue also has contributed to this consistent revenue growth for the first nine months of 2010, increased by 68% from the corresponding period of 2009.

“GP's strong performance in revenue and subscription growth has been consistent over the first nine months of 2010,” said Oddvar Hesjedal, CEO of Grameenphone Ltd.” He added, “We made it easy for our customers to adopt with the best of technology through our world class cellular solutions and services.”

The company has added 54 lakh new subscriptions during the year. At the end of September 2010, Grameenphone's total subscription base was 2 crore 87 lakhs, holding on to the market leadership by serving 44% of the mobile market.

Net profit after taxes for the first nine months of 2010 was BDT 774 crores with 14.0% margin compared to BDT 652 crores with 13.4% margin of the same period of last year. The increase was driven by revenue growth, partially offset by higher selling and distribution expenses, mainly against BDT 525 crores of SIM tax subsidies. This has also pushed the EBITDA margins down to 50% for the first nine months of 2010 compared to 59% of the same period of 2009. As a result of the above, Earnings per share (EPS) for the first nine months of 2010 stood at BDT 5.73 compared to BDT 5.37 for the corresponding period of last year.

Grameenphone CEO emphasized on the fact that SIM tax clearly has been the hindering factor of the digitalization process of Bangladesh through the mobile industry, also been resisting the potential of industry profitability. “However”, he added, “GP's strong revenue performance shows that subsidized acquisitions during the year have started to pay back through revenue generation.”

Grameenphone invested BDT 446 crores during the first nine months in 2010 mainly for network quality and data capacity enhancement. In addition, Grameenphone contributed BDT 2,800 crores to the Government during the first nine months of 2010 which represents about 50% of Grameenphone's total revenue for this period. Notably, despite having lower corporate tax rate, Grameenphone has paid BDT 697 crores in corporate taxes during the first nine months of this year, which was BDT 180 crores more compared to same period of last year.

Grameenphone Ltd. declared interim dividend in cash at the rate of 35% of the paid up capital (BDT 3.50 per share of BDT 10 each) for the year 2010 based on the half yearly performance of the Company for the same year. The Shareholders as of the record date of 2nd November 2010 will be entitled for this dividend, which will be distributed within the timeframe stipulated by the regulators. In June 2010, Grameenphone distributed 60% final dividend in cash for the year 2009. It is to be noted that the Company published its dividend policy earlier this year prior to its 13th AGM.

Grameenphone's head office has been shifted to its newly built headquarter “GP House” in Bashundhara, Dhaka. GP House is a state-of-the-art building with energy efficient modern amenities and eco-friendly atmosphere. The GP family has warmly embraced the new lifestyle at work with‘paperless’ and‘open office’ concept.

Corporate Communication Department
Grameenphone Ltd.
Telephone: 9882990