Strong subscription growth in Q4

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Grameenphone witnessed a jolt in subscription growth in the last quarter of 2009 with start-up campaigns pushing the total number of subscriptions over the 23Mn subscription base. The number of subscriptions increased by 1.3 million during the quarter compared to 0.2Mn in the same quarter of 2008. GP’s subscription base reached at 23.3Mn with 44.4% market share at the end of 2009.

Pointing out the surge in GP’s subscription growth on introduction of reduced start-up price, the Grameenphone CEO Oddvar Hesjedal said that “the SIM tax continues to be a significant bane for the industry and a barrier for tele-penetration in the country” as subscriptions spiked each time the company opted to subsidize the tax.

The revenue for the fourth quarter of 2009 increased by 2.6% to BDT 1,675 crore compared to the underlying revenue of the same quarter of 2008 which excluded onetime recognition of arrear interconnection revenue. This growth was mainly led by higher subscription base and tariff revision. Total revenue for this quarter was also increased by 1.3% from the third quarter of 2009.

“Despite a global recession, Grameenphone has had a good quarter in terms of subscription growth and its financial consolidation,” added the CEO. However, there is concern that with new entrants coming into the market there is possibility of greater competition ahead.

However, Average Revenue per User (ARPU) in this quarter decreased from BDT 268 to BDT 244 in comparison with the last quarter of 2008 mainly due to reduced interconnect rate from 26 March 2009 as defined by regulator and intake of new subscription from the financially constrained segment. EBITDA margin in this quarter stood at 52.6% compared to 59.6% of the last quarter of 2008 and 57% of the third quarter of 2009 mainly due to higher subscription acquisition costs. However, lower capital expenditure during the quarter has been in line with traffic demand.

Adjusted for non-routine items the net profit after tax for this quarter stood at BDT 235 crore.

Grameenphone has been listed in Bangladesh capital market after completing the largest initial public offering (IPO) ever in the country’s history. Trading of Grameenphone shares commenced in both Dhaka and Chittagong Stock Exchanges on 16 November 2009. The share of BDT 10 each was offered with premium at BDT 70 and on 30 December 2009 the trading price closed at BDT 187.5 in the Dhaka Stock Exchange.

Grameenphone’s shareholding structure after the IPO stood at 55.8% for Telenor, 34.2% for Grameen Telecom, and 10% to general retail and institutional investors.

Corporate Communication
Grameenphone Ltd.

Telephone: 9882990
Website:www.grameenphone.com

News Source : Strong subscription growth in Q4