Grameenphone Posts Sharp Jump in Profits on Higher Margins

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Bangladesh based Grameenphone has reported a 12.3% rise in its first quarter revenues of BDT 2 322 crore (USD279 million). The growth was mainly from voice as well as interconnection revenues driven by subscription growth revenues from non voice services roaming and infrastructure sharing.

­Net profit jumped to BDT 520 crores (USD62.5 million) compared to BDT 287 crores a year ago. The profit margin rose from 13.9% to 22.4%.

Higher profit for this period was mainly due to revenue growth, efficient cost management and reduced depreciation expenses. EBITDA margin for the first quarter of 2012 was 55.1%, which also has increased by 7.3 percentage points compared to 47.8% of the same period last year.

Grameenphone acquired 1.1 million new subscribers during the quarter and conclude with 37.6 million subscribers with approximately 42% market share.

On 13 February 2012, the High Court has directed Grameenphone to add 15% VAT amount to the Bangladesh Telecom Regulatory Commission (BTRC) receivables and pay an additional 15% VAT to the National Board of Revenue (NBR). The Court has allowed Grameenphone to obtain rebate on this VAT thereby, limiting Grameenphone's total license renewal cost to 100%.

As the proposed rebate mechanism does not seem workable under present VAT scheme, Grameenphone has filed a petition with the Appellate Division seeking clarification on VAT deduction mechanism related to 2G License renewal fees, particularly for the rebate on the 15% VAT amount payable to the NBR. The hearing before the Court is yet to be scheduled.

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Tags: grameenphone  Bangladesh 

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