Telecom operator Grameenphone has reported revenues of Tk11,286.75 crore for the first nine months of 2022, logging a growth of 5.7 percent from the same period last year, despite a regulatory ban on SIM sales amid complaints about the quality of services.
In the third quarter, the company lost 2.9 million subscribers, taking the subscriber base down to 81.8 million at the end of the quarter.
"Grameenphone's growth momentum continued in the third quarter driven by strong market execution aided by higher revenue and usage amid several external challenges. It was adversely affected by a regulatory ban on SIM sales from the end of June, resulting in a 3.4 percent quarter-on-quarter decline in subscriber base," Grameenphone CEO Yasir Azman said.
"As we continue to engage with our regulator to overcome this restriction, we received a partial withdrawal of the embargo from mid-September, allowing us to resume SIM sales immediately. We are also facing a tense macroeconomic climate in Bangladesh driven by higher inflation, rising energy prices and austerity measures by the government to curb energy usage."
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Grameenphone's total revenue for the third quarter saw a growth of 6.7 percent, reaching Tk33,864.93 crore, while subscription and traffic revenue grew by 6.9 percent from last year.
"Our investment in network rollout and spectrum deployment resulted in higher data usage of 52.1 percent year-on-year supported by a higher 4G active user base," Jens Becker, CFO of Grameenphone, said.
"Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter grew by 5 percent year-on-year driven by top-line growth, while EBITDA margin was 62.2 percent. Net profit after tax for the third quarter stood at Tk907.66 crore, with a margin of 23.5 percent."
During the third quarter of 2022, Grameenphone invested Tk278.15 crore in network coverage and expansion.
At the end of the quarter, Grameenphone's total number of sites stood at 19,719.
The company paid Tk7,850 crore equaling 69.5 percent of its total revenues, to the national exchequer in the form of taxes, VAT, duties, fees, 4G licence and spectrum assignment during the first nine months of 2022, according to a media statement.