Grameenphone posts 30% higher profit in April-June

Grameenphone Limited has posted Tk1,194 crore in profit after taxes in the April to June quarter this year, which is nearly 30% higher than what it was in the same quarter of 2022. 

The company said in its latest financial statement that its operating profit, during the quarter, inched down because of higher costs – mainly, salaries, and operation and maintenance.

But thanks to the provision of reversed income tax, where the company received a certain amount rather than paying taxes, it was able to post growth in its after tax profit.

In the January to June period this year, the country's largest telecom operator posted a 14% year-on-year growth in net profit, and the profit stood at Tk1,973 crore.

Its second quarter earnings per share (EPS) stood at Tk8.84, and half-yearly EPS at Tk14.62, which was Tk6.82 and Tk12.82 respectively in the same periods previous year.

Grameenphone's revenue, in the April-June quarter, increased by 5.6% year-on-year and stood at Tk4,000 crore. Its half-yearly revenue was 4.2% higher at Tk7,735 crore, compared to the first half of 2022.

The company said in a press release that it has been doing good business for the last nine consecutive quarters despite rising inflation and other economic challenges.

Grameenphone's Chief Executive Officer Yasir Azman said in a press statement, "Building on the growth momentum from the first quarter, the second quarter of 2023 demonstrates a sustained growth in both revenue and profit driven by strong market execution and strategic focus on network investment."

The company achieved positive developments in dispute resolutions and constructive dialogues while strengthening core services to create value amidst external challenges, he added.

Its Chief Financial Officer Jens Becker said, "Amidst several economic challenges, we continued our top line growth thanks to an increase in data users."

Grameenphone introduced appealing bundle packs throughout the quarter in both physical and digital channels which led to an increase in bundle revenue from the prior quarter, he added.

Why no interim dividend despite growing profit

During the April-June quarter, Grameenphone and Large Taxpayer Unit (LTU-Tax) have signed agreements to settle income tax disputes for the assessment years from 2007-2008 through 2019-2020 under the Alternative Dispute Resolution (ADR) process.

The company has also made payments to the Bangladesh Telecom Regulatory Commission (BTRC) as per the written judgement of the case relating to VAT mechanism and spectrum assignment fee during 2G licence renewal without prejudice to its rights, according to the press release.

Despite these positive developments regarding dispute resolutions, Grameenphone's cash position is still burdened with a payable amount of Tk1,769 crore, on top of regular payments.

In light of these settlements and continued constructive dialogues with the BTRC and their uncertain outcomes, Grameenphone is not recommending an interim dividend, the press statement reads.

With a positive approach towards resolving disputes, in the first half, Grameenphone has paid Tk7,030 crore equalling 91% of its total revenues to the national exchequer in the form of taxes, VAT, duties, licence and spectrum assignment fees.

In the second quarter, the company saw 11.39 lakh new subscribers who increased its total subscribers to 8.13 crore. But it was still 4% lower than the previous year due to an embargo on SIM sales.

Grameenphone shares, having a face value of Tk10 apiece, were stuck at the floor price of Tk286.6 on the Dhaka Stock Exchange on Tuesday.