GP profit up marginally

Grameenphone reported a decline in its revenue in the July-September quarter of 2024 while its profit grew marginally due to political turmoil and floods in the eastern part of the country.
An internet shutdown amidst a student upsurge against the previous government caused a big decline in its data revenue.
The top telecommunication company’s total revenue dropped 3.8 percent to Tk 3,950 crore in the third quarter of the year.
At the same time, its profits advanced 1.1 percent to Tk 760 crore, according to the financials of the company.
Meanwhile, stocks of the multinational company soared to Tk 379 after the fall of the Sheikh Hasina-led government. Later it saw a correction. Yesterday, it rose 2.17 percent to Tk 311.
Yasir Azman, chief executive officer of Grameenphone, said this quarter has been challenging across various fronts — economically, politically and through natural disasters.
Despite these difficulties, the company has achieved well-managed financial and operational trends while maintaining its investment in strategic growth areas, he added.
Political unrest had a significant impact on data usage, with average revenue per user declining 7.5 percent year-on-year.
During the quarter, Grameenphone secured 5.9 GB of average data usage per user, which was 17 percent lower from the same period last year.
The company’s operational costs increased 4.5 percent to Tk 1,380 crore year-on-year.
It was mainly due to an increase in business costs during the unrest period and extraordinary costs from re-establishing network in the flood affected regions, the company said in its financial highlights.
“As the industry leader, we must collaborate closely with government institutions and policymakers,” he said.
“…to foster a more sustainable, pro-investment environment that encourages innovation, addresses customer needs, and ensure we can compete fairly and effectively in the rapidly evolving digital landscape,” he added.
The listed telecom company reported a total subscriber base of 8.46 crore at the end of the third quarter, which was 3.1 percent higher than that in the same quarter of the previous year.
Of that, 4.93 crore, or 58 percent of the subscribers, use internet services.
The subscriber growth was offset by the drop in average revenue per user of 7.5 percent from unrest and harsh weather conditions.
GP’s earnings per share (EPS) stood at Tk 5.59 in the third quarter, whereas it was Tk 5.53 in the same quarter of 2023.
In the nine-month period of 2024, the EPS was Tk 21.88, whereas Tk 20.15 in the first three quarters of the previous year.