Release Date: October 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Grameenphone Ltd (DHA:GP, Financial) achieved a commendable EBITDA margin of close to 59% despite challenging conditions.
- The company reported a 1% increase in net profits, reaching a healthy margin of 19%.
- Grameenphone Ltd (DHA:GP) invested BDT3.9 billion in CapEx this quarter to support growth opportunities.
- The enterprise segment showed strong growth momentum with an 8.1% year-on-year increase.
- Grameenphone Ltd (DHA:GP) advanced its digital innovation through AI and analytics, winning the Asian Technology Excellence Award for the best self-care app in Bangladesh.
Negative Points
- The company faced a 3.8% decline in revenue due to unrest, internet shutdowns, and adverse weather conditions.
- Subscriber numbers decreased, with a notable drop in mobile data users by 2.2 million.
- ARPU declined by 7.5% due to a significant drop in data usage during the internet shutdown.
- The macroeconomic environment remains challenging with increased taxes and inflation impacting customer purchasing power.
- Grameenphone Ltd (DHA:GP) is still dealing with unresolved litigation related to the BTRC audit case.
Q & A Highlights
Q: Any update on the litigation related to BTRC audit case?
A: Yasir Azman, CEO: There is no development on the merit of the BTRC case this quarter. The next date for statutory mediation is set for July 7, 2025. Grameenphone encourages exploring amicable resolutions in a transparent manner.
Q: What is your view on the litigation regarding the audit from 1997 to 2014?
A: Yasir Azman, CEO: We respect the law and judicial system, and while we cannot comment on the ongoing case, we emphasize the importance of a fair business environment that encourages innovation and addresses customer needs.
Q: During the internet shutdown, people made more phone calls than usual. Why is there only a 1% growth in Q3 2024?
A: Otto Risbakk, CFO: Voice calls showed slight growth, but data usage was significantly impacted by the shutdown, leading to a 16% decrease in average data consumption. This affected overall revenue, resulting in only a 1% increase in net profit.
Q: What is Grameenphone doing to increase the number of mobile internet subscribers?
A: Otto Risbakk, CFO: We are leveraging our strong brand and best network in the country. Despite a temporary slowdown due to economic conditions, we are confident that growth will resume, supported by our attractive products and services.
Q: Has the extra 2.6 gigahertz spectrum received this year been considered in this quarter's report?
A: Yasir Azman, CEO: The spectrum is not reported in this quarter's financials as it is conditional upon the payment of the first installment, which is yet to be made. The spectrum will be effective from July 2025, and discussions with the regulator are ongoing.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
