Grameenphone retains growth momentum despite ban on SIM sales

Grameenphone Ltd registered a 5.1% year-on-year revenue growth in the calendar year 2022, continuing growth for the seventh consecutive quarter in the October-December period, despite a regulatory ban on its new SIM card sales during the second half of that year.

Over the year, Grameenphone's subscriber base shrank by 5%, but increased investment in networks ensured that its internet data use grew by 38.8% compared to 2021, likely offsetting the impact of a reduced subscriber pool.

In the fourth quarter of 2022, the telecom giant invested over Tk500 crore on network coverage and expansion, reaching the milestone of 20,000 site infrastructures as well as 19,600 4G site infrastructures. That took its 4G user base to 3.42 crore, a 23.6% increase compared to 2021.

The telecom regulator imposed a ban on new Grameenphone SIM sales on 29 June 2022, but they lifted it on 2 January this year as a result of constructive dialogue and engagement, said Yasir Azman, CEO of Grameenphone.

"Grameenphone reported an improving financial performance in 2022 driven by topline and EBITDA (earnings before interest, taxes, depreciation, and amortisation) growth. Total revenues grew by 5.1% to over Tk15,040 crore. Investment in network and spectrum deployment contributed to growing usage in data and bundle segments, leading to seven consecutive quarters of year-on-year revenue growth despite a lower subscription base caused by the ban of SIM sales." said Jens Becker, CFO of Grameenphone. 

"Grameenphone also registered ongoing growth in EBITDA, supported by the growth in revenue and efficiency measures despite increasing pressure from the macroeconomic climate and rising inflationary costs. EBITDA for the full year grew by 4.8% with a margin of 62.4%," he added.

"Grameenphone exhibited a resilient performance in the face of external hurdles in the fourth quarter of 2022, ending the year with continued topline growth momentum," said the company's Chief Executive Yasir Azman.

The company's board of directors recommended Tk9.5 dividend per share for 2022 at a meeting held on 30 January. With this, its total cash dividend stands at 220% of paid-up capital and represents 98.72% of profit after tax for the year 2022 (including 125% interim cash dividend). 

The company said it paid Tk10,427 crore, equalling 69.3% of its total revenue, to the national exchequer in the form of taxes, VAT, duties, and 4G license and spectrum assignment fees during 2022.