Grameenphone's profit shrinks despite more revenue in Sep quarter

The country's largest mobile operator Grameenphone has witnessed a 17.7% year-on-year drop in its profit for the July to September quarter of 2023, even though its revenue grew by 6.32%.

According to the company's interim financial statements, its profit stood at Tk747.15 crore, and revenue at Tk4,109 crore in the July-September quarter this year. Its earnings per share (EPS) stood at Tk5.53.

The company stated in its financial statement that its profit declined because of a 64% increase in its finance expenses, and 15.3% increase in tax expenses during the quarter, compared to the previous year's September quarter.

At the end of the quarter, Grameenphone's finance expenses stood at Tk158 crore, and income tax expenses at Tk774 crore.

However, in the first nine months of 2023, despite a staggering 222% growth in finance expenses, the telecom operator managed to post revenue nearly 5% higher, and net profit 3% higher compared to the January to September period of 2022.

In this year's January-September period, Grameenphone's revenue stood at Tk11,845 crore, net profit at Tk2,720 crore, and finance expenses at Tk815 crore.

At the end of the nine-month period, its EPS was Tk20.15, net asset value per share 42% higher year-on-year at Tk44.87, and net operating cash flow per share 7.85% lower at Tk34.36.

Grameenphone's board approved the quarterly financial statements in its meeting held on Monday.

The mobile operator will organise an investors' meet to explain its financial performance today through a digital platform.

Grameenphone got listed on the stock exchanges in 2009. Its market capitalisation is Tk38,699.59 crore. The company's shares are stuck at floor price of Tk286.60 each since October 2022.

In 2022, it made a profit of Tk3,009.1 crore and paid a 220% cash dividend to its shareholders.