GP’s net profits fall as political unrest bites

July 15, 2015

Grameenphone’s net profits fell slightly in the first half of 2015, hurt by political turmoil and intense price competition. Between January and June, the country’s largest mobile operator logged in Tk 1,050 crore in net profits, down 0.94 percent year-on-year. Grameenphone’s net profits in the second quarter stood at Tk 513 core, which is a decline of 5.35 percent from a year earlier.
The lone listed operator declared 80 percent interim cash dividends, which means Tk 8 per share of Tk 10 for the year.
“This can be considered as a reflection of Grameenphone’s commitment toward creating value for its shareholders,” Rajeev Sethi, chief executive officer of Grameenphone, said in a statement yesterday.
The operator reported revenue of Tk 5,150 crore for the first half, up 0.7 percent year-on-year.
“We experienced marginal growth from last year with initial setback from intense price competition and political turmoil during the first quarter of 2105,” Sethi said.
“As hinted last time, we are actually observing gradual recovery from the end of the first quarter with our simplification initiatives in improving usability experience and network superiority.”
It acquired 16 lakh new subscribers during the period, marking a growth of 7.9 percent year-on-year. At the end of June, Grameenphone’s total subscription base stood 5.31 crore, consolidating its position as the country’s leading mobile operator. As of May, its SIM market share was 41.9 percent.
Its data subscriber base stood at 1.34 crore, with “encouraging volume growth”, according to the statement.
Date services fetched Tk 360 crore in the first half, up 63.6 percent year-on-year.
The operator invested Tk 1,010 crore during the first half for 3G sites, 2G coverage, capacity enhancement for higher volume of data and voice as well as enhancement of IT infrastructure for better product and service offerings.
Each Grameenphone share traded between Tk 347.8 and Tk 340.6 on the Dhaka Stock Exchange yesterday, before closing at Tk 342.2.

-With The Daily Star input

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