GrameenPhone’s Q2 profits dip, but rise slightly in first six months

19 Jul 2010

Bangladesh’s largest mobile operator by subscribers, GrameenPhone, has reported that its net profit for the second quarter of 2010 fell by 32.8% year-on-year to BDT1.68 billion (USD24.5 million), despite revenues that rose 15.4% to BDT18.77 billion. However for the first six months of the year net income climbed slightly, to BDT4.83 billion, compared to BDT4.73 billion in January-June 2009, on an 11.8% increase in first-half turnover to BDT35.81 billion, helped by a 68% rise in data services revenues. Underlying the headline results was a fall in April-June operating income from BDT5.50 billion in 2009 to BDT3.80 billion in 2010 (BDT10.77 billion to BDT9.14 billion in January-June), offset by a BDT500 million net gain in financial transactions in 1H10 compared to 1H09’s net finance expenses of BDT1.15 billion. Marketing and distribution expenses multiplied year-on-year by a factor of ten in 2Q10 to BDT2.88 billion. The GSM operator, a subsidiary of Norway’s Telenor, added 2.6 million net new mobile subscriptions in the second quarter to take its total base to 26.5 million, which it claimed gave it approximately 44% of the Bangladeshi market. The rapid gains have been at the expense of profit margin, which shrunk to 13% in the first half of 2010 from 15% in 1H09; the fall in margin was mainly attributed to GrameenPhone’s heavy customer subsidy total – amounting to BDT3.27 billion in the six-month period.

Bangladesh , GrameenPhone (GP)



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