reports
- A K M Arif Uzzaman Arif Uzzaman
Equity Note on Grameenphone Ltd. (GP)
Grameenphone Ltd. (GP) is primarily engaged in providing mobile telecommunication services (voice, data and other related services), along with digital services in the country. The company also provides international roaming services through international roaming agreements with various operators in different countries across the world. GP generated majority of its revenue from voice segment, constituting an average of 59.2% of its total revenue from FY’19 to FY’23. Additionally, the company e...
- Md. Ifrat Khan
Grameenphone: c30% yoy earnings growth driven by BDT 2.4bn net provisi...
GP paid BDT 17.7bn for the settlement of regulatory disputes: BDT 7.8bn to NBR for the settlement of tax disputes till 2018 and BDT 9.9bn payment to BTRC considering the written judgment for the case relating to VAT mechanism and spectrum assignment fee during 2G license renewal. Operating profit remained flat: 5.6% Revenue growth was offset by increase in non-cash expense (Depreciation and Amortization). c30% earnings growth was driven by Net provision reversal of BDT 2.4bn. Because of cash ...
- Humayra Afroz
- Tanay Roy
How did multinational companies perform in Jan-Mar 2023?
* The cumulative profits of Multinational Companies (MNCs), excluding BERGERPBL, increased by c5% yoy in Jan-Mar 2023. * Consumer staple companies experienced continued growth, performing well during the quarter: * MARICO’s profit grew c. 25% this quarter because of profitability improvement driven by lower copra price and opex management * RECKITTBEN resumed topline growth and generated strong earnings growth by trimming operating expenses * All construction companies ...
- Md. Ifrat Khan
- Tanay Roy
Grameenphone: Q1 CY23 Earnings Update:: c4% yoy earnings decline
GP posted c4% yoy profit decline in Q1 CY23. The earnings decline was mainly driven by the rise of finance expense and depreciation cost, totaling to BDT 1.8bn. It had BDT 0.8 impact in Q1 CY23 EPS after tax adjusted basis. 2.8% yoy revenue growth reported in Q1 CY23. In Q1 CY23, Revenue stood at BDT 37,348mn against BDT 36,335mn in Q1 CY22 which indicates 2.8% yoy revenue growth. Revenue growth was mainly driven by 14.2% data revenue growth yoy. ARPU is growing for the last five quarters. Th...
- Shopnil Paul
- Tanay Roy
Restriction on Grameenphone SIM card sale is withdrawn
On 29th June, 2022, on the ground of the poor service quality, the Bangladesh Telecommunication Regulatory Authority (BTRC) imposed a ban on selling new and old SIM Card for Grameenphone and instructed them to improve their service quality, especially to bring down the call drop rate. Because of the high demand for Grameenphone SIM, on 20th November 2022, BTRC allowed GP to sell 78,000 SIM cards to selective public and private corporate clients, including Bangladesh Armed Forces. Finally, BT...
- Tanay Roy
Grameenphone: Q2 2022 - c8% yoy earnings growth driven by c6% revenue ...
GP recorded BDT 6.8 Q2 2022 EPS vs BDT 6.3 in Q2 2021. The reported numbers translate to c8% yoy increase in bottom line. If we adjust one-off tax adjustment, EPS in Q2 2022 would stand at BDT 6.4, implying 2.3% yoy earnings growth. The earnings growth was mainly driven by c6% revenue growth. During 6M 2022, EPS of the company stood at BDT 12.8 against BDT 12.9 in 6M 2021. BDT 37.8bn revenue in Q2 2022 – highest in any quarter so far. This is noteworthy for two reasons. First, it occurred in ...
- Tanay Roy
Grameenphone: Q3 2021 – c4% yoy earnings decline driven by one-off ope...
GP recorded BDT 6.34 Q3 2021 EPS vs BDT 6.59 in Q3 2020. The reported numbers translate to c4% yoy decline in the bottom line and underperformed our expectations by c4%. The major reason for such a yoy decline was BDT1.3bn additional operating expenses, which if adjusted from both quarters, would show c1% normalized earnings growth. The 9M 2021 reported EPS stood at BDT 19.24 while 9M 2020 EPS was BDT 19.89, implying a 3.0% yoy decline in the bottom-line. Revenue increased by 1.8% yoy in Q3 2...
- Md. Asrarul Haque
- Tanay Roy
Grameenphone: c6% yoy normalised earnings decline in Q1 driven by c4% ...
GP recorded BDT 6.6 Q1 2021 EPS vs BDT 7.9 in Q1 2020. The reported numbers translate to c17% yoy dent in the bottom line. Please note that GP recorded a BDT1,228mn one-off gain in Q1 2020. If we adjust the one-off gain, Q1 2020 normalized EPS would amount to BDT 7.0. We expected that Q1 2021 earnings, compared to the normalized earnings of a year ago, would remain flat at BDT 7.0 EPS. However, the reported figures under-performed our expectation by c6%, similar to the normalized yoy decline ...
- Tanay Roy
Grameenphone: New purchase of spectrum to improve network quality; rei...
Grameenphone (GP) has bought 10.4 MHz spectrum (0.4 MHz of 1800 band, 10 MHz of 2100 band). Among the other major operators, Robi bought 7.6 MHz spectrum (2.6 MHz of 1800 band, 5 MHz of 2100 band) and Banglalink bought 9.4 MHz spectrum (4.4 MHz of 1800 band, 5 MHz of 2100 band). After the auction, Bangladesh has exhausted all its spectrum capacity under 1800 and 2100 bands. [/j7Paf5nKqL4415CTHkHDR1WdJhO16r0w4ly2Fj8q.png] The spectrum cost USD450mn (BDT38.2bn) for 15 ye...
- Tanay Roy
Grameenphone: CY 20 – c8% NPAT growth, normal dividend payout resumes;...
Grameenphone (GP) reported c12% yoy earnings growth in Q4 20 and c8% yoy earnings growth in CY20. EPS of the company is reported at BDT 7.7 (NPAT BDT10.3bn) in Q4 20 vs BDT 6.8 (NPAT BDT9.2bn) in Q4 20. During the year 2020, GP reported annual EPS of BDT27.5 (NPAT BDT37.2bn) vs BDT25.6 (NPAT BDT34.1bn) in CY19. However, if we adjusted one-offs, Q4 20 and CY20 EPS would be lower. During the year, GP reported a few one-off earnings and expenses, which include BDT2,451mn provision reversal, BDT2...
- Tanay Roy
Bangladesh Telcos: A giant leap in data; we prefer Grameenphone
A sustainable increase in data revenue. Industry data revenue increased by c17% yoy in Sep 2020. Even after the post-lockdown period, industry data revenue increased by c4% qoq (from Q2 20 to Q3 20), mainly driven by growth in the subscriber base, thus suggesting that this leap in data revenue is sustainable. Industry data ARPU increased by c12% yoy in Q3 20. The pandemic uplifted average data revenue per user from BDT 55 in Sep 2019 to BDT 62 in Sep 2020. Average MB per user (AMBPU) increase...
- Joy Bhattacharjee
- Tanay Roy
Grameenphone: Q3 20 – Post-pandemic recovery continues; raise TP, main...
Q3 20 earnings generated c22% yoy growth on a reported basis and c9% yoy decline on a normalised basis. EPS stood at BDT6.6 in Q3 20 against BDT5.4 in Q3 19. Please note that Q3 19 provisioned one-off tax expenses, which, if adjusted, would have resulted in BDT7.2 EPS in Q3 19. Therefore, on a normalised basis, Q3 20 generated c9% decline in earnings. The main reasons are the decline in revenue and higher salary expenses. Post-pandemic revenue recovery slowed down for natural disaster, SMP re...
- Tanay Roy
Grameenphone: Q2 20 earnings underperformed expectations but dividend ...
EPS of BDT 5.38 (vs BDT 7.07 in 2Q 19) declined by c24% yoy. Grameenphone’s (GP) EPS underperformed our expectation of BDT6.5 by c17%. The main reason was a decrease in voice revenue by c16% because of 66-day long lockdown and 500bps additional supplementary duty (SD) imposition from 11 June. Besides, higher opex to restructure employees, higher finance expenses, and a higher effective tax rate on a yoy basis put further pressure on the earnings. On a half-yearly basis, 1H 20 EPS stood at BDT....
- Tanay Roy
Grameenphone: Budget declaration and regulatory changes pose constrain...
Supplementary Duty (SD) increased from 10% to 15% for all telecom services; short-term impact is negative. Despite many attempts of negotiation by the telecom operators and business groups, the government increased SD by 500bps in FY21. The main purpose is to increase revenue collection for FY21. Increasing SD by 500 bps implies that the expenditure for 100 minutes of voice and 1 GB data will increase by 8.6% (BDT5.2, USD0.06) and 6.7% (BDT5.7, USD0.07) respectively at the consumer end. Histo...
- Tanay Roy
Grameenphone will seek legal recourse if regulator imposes any SMP res...
The Bangladesh Telecommunication Regulatory Commission (BTRC) may attempt to impose three restrictions on Grameenphone (GP) under Significant Market Power (SMP) regulations, according to reports. The mentioned restrictions are - reducing interconnection revenue from BDT 0.10 to BDT 0.05 per minute, increasing minimum usage period before switching to GP from other operators by 30 days (from 60 days to 90 days), and taking prior approval from BTRC while launching new packages or services. Shoul...
- S.M Galibur Rahman
- Shopnil Paul
- Tanay Roy
Bangladesh – Economic activities resume; we prefer Telco, Consumer, ...
No more general holiday from 31 May On May 31, 2020, Bangladesh will mark the end of 66-day long ‘General Holiday’ (38 days lockdowns, 20 weekends, and 8 public holidays) as the economic activities resume on a ‘limited scale’. For the next 15 days, all private and public offices and factories are allowed to remain open, complying to the health rules, from 6am to 4pm. However, people are requested to stay home from 8pm to 6am without emergency needs. The stock market was also closed for t...
- Tanay Roy
Grameenphone: Final payment for injunction; fresh dialogue on audit cl...
Grameenphone (GP) paid the second and final installment of BDT10bn (USD117.6mn) to the Bangladesh Telecommunication Regulatory Commission (BTRC), according to reports. The court demanded BDT20bn (USD235.3mn, c16% of audit claim) from GP in November 2019 when the company applied for an injunction against the non-issuance of a no-objection certificate (NOC). The regulator stopped issuing this certificate to GP to persuade them to pay the audit dispute claim. We expect to see a fresh discussion ...
- Tanay Roy
Grameenphone: Q1 20 – Data growth and margin expansion lead to 26% y...
EPS BDT 7.92 (vs BDT 6.29 in 1Q 2019) surpassed expectations by 8.5%. Data revenue growth by c25% yoy, 73bps yoy EBITDA margin expansion, BDT802mn one-off foreign exchange gain due to 16% YTD Norwegian krona (NOK) depreciation, and low effective tax rate (38%) generated BDT10.6bn profit in 1Q 2020. If we adjust for the one-off currency gain and low tax rate, the profit would stand at BDT9.6bn (EPS 7.3), which is similar to our expectations. Contribution from strong data growth slightly tainte...
- Tanay Roy
Grameenphone: Bangladesh telco regulator eases stance amid Covid-19 ou...
The regulator has relaxed its stance in the wake of Covid-19 The Cabinet Division and the Ministry of Public Administration asked the telecom operators to make services available throughout the Covid-19 outbreak. To ensure the uninterrupted telecom service, the regulatory bodies became more cooperative. The tension between Grameenphone (GP) and Bangladesh Telecommunication Regulatory Commission (BTRC), caused by the ongoing audit dispute, eased up after the Court gave written order to the reg...
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.