Q1 2020: Reduced growth momentum due to an increasingly challenging regulatory environment.

Apr 22 2020

[Dhaka 22 April 2020] Grameenphone Ltd. reported total revenues of BDT 36.2 billion for the first quarter of 2020, registering a 3.7% growth from the same period last year. The operator also ended the quarter with 75.3 Mn total customers, of which 53.6%, or 40.4 Mn, are internet customers. During the first quarter, the operator also registered a 24.6% growth in data revenue YoY.

“We continued to face challenges in the first quarter of 2020. The restrictions placed on us by our regulator by not issuing NOCs lasted until March, which impacted our planned investment in the country. Additionally, we were facing a scarcity of numbers from the beginning of the quarter that has negatively impacted our subscriber base. Despite the challenges, our focus remained on market execution and maintaining our network leadership position. Our reinforced drive on 4G conversion led to 14.2 Mn 4G users at the end of the quarter.” said Yasir Azman, CEO of Grameenphone Ltd.

“As a listed essential service in the current situation of COVID-19 outbreak in Bangladesh, we are dedicated to continuing serving our customers with the help of our partners, authorities, local communities and with support from law enforcement. We are also committed to contributing to our society in this time of crisis, and with close collaboration with the government and various NGOs, we are using our technology expertise in spreading awareness messages and mapping the spread of Coronavirus using data analytics. We have committed to providing 50,000 units of medical grade professional PPE and 10,000 PCR test kits to our medical front-liners. As we have started getting clearance on our NOCs recently, it will help us improve our customer experience significantly in the coming days.” he added.

Net profit after taxes (NPAT) for the fourth quarter was BDT 10.7 billion, with 29.6% margin. Earnings per share (EPS) for the period stood at BDT 7.92.

“Grameenphone Ltd. reported a reduced growth momentum in the first quarter of 2020,” said Jens Becker, CFO of Grameenphone Ltd. “We experienced strong growth in data revenue despite challenges in our planned network rollout. As a connectivity partner to the Digital Bangladesh journey, we will continue investing in the country and building a strong network and distribution ecosystem in order to deliver value to our shareholders and our customers”

In the first quarter, Grameenphone Ltd. invested BDT 0.4 Bn for network coverage, and added 197 new 4G sites to their network. The total number of sites stands at 16,542. The company also paid out BDT 24.6 Bn equaling 68% of its total revenues, to the national exchequer in the form of taxes, VAT, duties, fees, 4G license and spectrum assignment.

Detailed Financial Statements are available at: https://www.grameenphone.com/about/investor-relations/ir-financial-report

Md Hasan,

Head of External Communications

Email: md.hasan@grameenphone.com

Phone: 8801711082469

About Grameenphone Ltd.

Grameenphone, part of the Telenor Group, is a leading telecommunications service provider in Bangladesh with more than 75 million subscribers. Since its inception in 1997, Grameenphone has built the largest cellular network in the country, covering nearly 95 percent of the country's population. With its brand promise to enable customers to “Go beyond”, Grameenphone seeks to help customers get the full benefit of mobile data and voice services and provide Internet For All. Grameenphone is listed on the Dhaka Stock Exchange.  www.grameenphone.com:  www.facebook.com/grameenphone