GP posts Tk 760cr profit in Q3
The country’s leading mobile phone operator, Grameenphone has witnessed a net profit of Taka 760 crore in the third quarter (Q3) in this year and the margin of the net profit after taxes (NPAT) was 19.1 percent. The operator, however, reported a total revenue of Taka 3,950 crore for the Q3 of 2024, registering de-growth of 3.8 percent from the same period last year, according to the quarterly update of Grameenphone.
“Our revenue declined only 3.8 percent to Taka 3,950 crore, while EBITDA reached a solid Taka 2,320 crore, down by 8.7 percent,” said Otto Risbakk, Chief Financial Officer of Grameenphone. He added, “We’re able to achieve an EBITDA (earnings before interest, taxes, depreciation, and amortization) margin of 58.7 percent and an operating cash flow margin of nearly 49 percent.”
Grameenphone attributed it to their strong cash flow and solid balance sheet, which they were able to adopt a long-term perspective regarding investments and innovation, alongside maintaining an attractive shareholder remuneration policy. EBITDA margin is a profitability ratio that measures how much in earnings a company is generating before interest, taxes, depreciation, and amortization, as a percentage of revenue.
The Q3 showed that the operator reported a total subscriber base of 8.46 crore at the end of the quarter, of which 58.3 percent or 4.93 crore were using internet services. Despite the difficulties -economically, politically, and natural disasters, Grameenphone has achieved well-managed financial and operational trends with maintaining its investment in strategic growth areas, said Yasir Azman, Chief Executive Officer of Grameenphone.
“During this crisis, we guided our customers on how to recharge their mobile phone accounts, access emergency balances, and obtain vital information about available services, helping them navigate through these challenging circumstances,” he added. At end of the Q3, earnings per share of the operator were 5.59, while CaPex was Taka 390 crore.
Capital expenditures (CapEx) are funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment. CapEx is often used to undertake new projects or investments by a company.
