Submarine Cable Company’s profit jumps 57% as internet use surges
Bangladesh Submarine Cable Company’s share price rose by 1.3% to close at Tk225.5 per share on Tuesday
Bangladesh Submarine Cable Company Ltd (BSCCL), a core telecommunication service provider in the country, posted 30% growth in revenue and 57% rise in net profit in the first half of FY22 as the use of the internet surged across the country recently.
The state-run company said the substantial efforts of its management, the government's policy of digitisation of services and the introduction of 4G and 5G services have helped increase the use of overall international private leased circuit (IPLC), a point-to-point data communication service, in the country.
As a result, its revenue increased in the July-December period of FY22, reads the latest financial statements of BSCCL.
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The company mainly provides high capacity voice and data bandwidth to all important places in Bangladesh for the benefit of IT-related services.
According to its financial statement, the company's revenue rose by 30% to Tk202.53 crore and its net profit rose by 57% to Tk112.90 crore in the July-December period of FY22, compared to the same period of the previous fiscal.
At the end of December 2021, its earning per share was Tk6.28, which was Tk4.01 at the same time a year ago.
After the news was published on the Dhaka Stock Exchange website, BSCCL's share price rose by 1.3% to close at Tk225.5 per share on Tuesday.
BSCCL currently operates two submarine cable landing stations with the capacity of 1,900 gigabits per second. The first one is SMW-4 in Cox's Bazar, launched in 2005, and the second one is SMW-5 in Kuakata, launched in 2017.
Last year, BSCCL approved the draft contract for construction and maintenance of a third submarine cable.
The third submarine cable is widely known as the South East Asia–Middle East-Western Europe-6 (SEA-ME-WE-6) Consortium. Its landing station will be built in Cox's Bazar.
The project will cost Tk692 crore, and at its completion, bandwidth will increase by an additional six terabits per second, increasing the scope for earning foreign currency.
