GP’s net profit makes strong recovery

Grameenphone has made a strong recovery from the coronavirus pandemic as its net profit rose 22 per cent to Tk 890 crore in the third quarter, benefiting from the ongoing economic revival.

The net profit after tax also advanced by the same margin from the second quarter of 2020, data from the largest mobile phone operator showed yesterday.

With this, GP rebounded from the massive fall its net profit incurred in the second quarter, when it tumbled 23.87 per cent because of the Covid-19 crisis.

The profit margin rose by 5.1 percentage points to 25 per cent in the July-September quarter, which was 19.90 per cent in the third quarter last year and 22 per cent in the April-June quarter this year.

"Grameenphone is reporting a recovering topline in the third quarter of 2020 as the economic activity of Bangladesh gradually resumes following the initial months of the Covid-19 pandemic," said Yasir Azman, CEO of the operator, in a press release. 

Earnings per share (EPS) also rose: it was Tk 6.59 in the third quarter, up from Tk 5.38 in the July-September quarter last year, according to a posting on the website of the Dhaka Stock Exchange (DSE).

The net asset value per share was Tk 31.29 on September 30 compared to Tk 21.53 recorded on the same day last year.

The share of GP was traded at Tk 335.90 on the DSE yesterday, up 0.27 per cent from the previous session. Since July 9, the stock of the country's largest-listed company has risen more than 40 per cent, data from the bourse showed.

GP reported revenue of Tk 3,560 crore for the third quarter, down 2.8 per cent year-on-year.

The operator took home Tk 10,480 crore in the first nine months of the year, again a decline of 2.5 per cent. The net profit after tax totaled Tk 2,690 crore and the EPS stood at Tk 19.89 as of September this year. 

The operator ended the quarter with 7.76 crore customers, up 2.5 per cent from 7.57 crore in September last year. Of its customers, 54.1 per cent, or 4.2 crore, use internet.

Azman said the network rollout significantly increased in the third quarter allowing it to expand the 4G footprint.

"Through strong operational execution, we focused on driving subscriber net adds and 4G conversion, leading to a 4.1 per cent increase in our total customers from the previous quarter."

The regulator has approved a proposed agreement under the tower company guideline, which will enable GP to set up new sites and significantly help it provide an even better customer experience throughout the country, he said. 

The third quarter brought some additional challenges due to record rainfall and floods in parts of the country, said Jens Becker, chief financial officer of GP. 

"After reporting degrowth of 8.1 per cent in the previous quarter, we see promising recovery in the third quarter with degrowth of 2.8 per cent year over year in total revenues along with growth in both data revenue and data users."

Becker said the operator registered healthy growth in digital recharge volume. "The continued growth in data and users reinforces our focus on strengthening our network with planned investment."

In the third quarter, the carrier invested Tk 320 crore for network coverage, adding 1,070 new 4G sites to its network. The total number of sites now stands at 16,481.