Net profit jumped to BDT 520 crores (US$62.5 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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