GP announces 13-year low dividend
The mobile operator had paid a 120% cash dividend in 2010
Grameenphone – the largest mobile operator of Bangladesh – has declared a 125% cash dividend for its shareholders for 2023, which is the lowest since 2010.
The dividend pay-out ratio for 2023 represents 51.03% of its total profit. In 2022, it had paid 98.72% of its total profit.
The declaration of dividends came out at its board of directors meeting held yesterday. The board also approved its audited financials for 2023.
As per its dividend history, the mobile operator, which got listed in 2009, had paid a 120% cash dividend – 85% final and 35% interim dividend – in 2010.
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After that, till 2022, GP did not pay such lower dividends.
The annual general meeting (AGM) for approval of the announced dividends and financials has been scheduled for 2 May this year while 29 February has been fixed as the record date.
According to its audited report for 2023, the operator registered a 9.90% growth in profit compared to 2022.
Its net profit for 2023 stood at Tk3,307 crore, which was Tk3009 crore a year ago.
The earnings per share (EPS) stood at Tk24.49 for 2023, up from Tk22.29 in 2022.
The report says its revenue increased by 5.51% to Tk15,870 crore, which was Tk15,040 crore in 2022.
The GP said in its price sensitive statement, its revenue grew due to a higher mobile communication revenue, which was driven by higher voice, and data services, and partly offset by lower bundle service revenue.
According to its shareholding reports for December 2023, Telenor Mobile Communication AS, sponsor of Grameenphone, holds 55.80% share, while another sponsor Grameen Telecom holds 34.20% and the rest 10% shares are held by the institutional investors, foreign investors and the general investors.
In 2022, GP witnessed a 12% year-on-year decline in EPS. Its EPS was Tk22.29, which was Tk25.28 in 2021.
Based on its profitability, the mobile operator paid 220% cash dividends - 95% final cash and 125% interim dividend.
The dividend pay-out ratio represents 98.72% of its total profit.
Grameenphone shares price remained stuck at Tk286.60 each at the Dhaka Stock Exchange (DSE) on Monday.
