During the year, GP acquired 7.1 million new subscriptions, taking the year-end subscription base to 47.1 million with 41.4% subscription market share. With 17.7% growth in subscriber against industry growth of 17.1%, GP managed to strengthen its leadership position further. Expansion of distribution and increased loyalty of retailers helped gain this position. 

 “It is my immense pleasure to inform our honorable Shareholders that 2013 has been a turnaround year for GP with 3G spectrum acquisition, restored revenue growth momentum, revitalized market machineries and partnering with Accenture to gain competitive advantage in IT”, said Vivek Sood, CEO of Grameenphone Ltd. He added, “During the year, we performed as activist of challenges amidst adverse externalities, innovated with customer centric offers and steered the business in the right direction towards enhancing value for the shareholders.”

With the commercial launch of 3G services in country during October last year, GP envisions to empower societies by opening up new opportunities with internet for ALL for the people of Bangladesh. GP strongly believes that mobile data services and internet will unlock a whole new world of information, education and entertainment of which many are still unaware. GP will be able to provide full benefit of connectivity to its customers. In this regard, GP concentrated on faster rollout of 3G services covering 7 divisional headquarters by 2013 via commissioning 1,074 sites. The company aspires to maintain this high rollout trajectory and cover all the district headquarters by April 2014. This is in line with the promise made to the investors in October 2013.

Net profit after taxes for 2013 was BDT 14.7 billion with 15.2% margin compared to BDT 17.5 billion with 19% margin of 2012. Lower net profit for this period was mainly due to higher corporate tax payment along with retrospective effect of 2012, 2G/3G spectrum amortization and higher interest expenses partly offset by gain on sale of shares in GPIT and foreign exchange. EBITDA margin for the year was 51.3% down from 53.1% of 2012. 

Earnings per share (EPS) for 2013 stood at BDT 10.89 compared to BDT 12.96 of 2012. This prompted a 16% dip in earnings. For the fourth quarter of 2013, EPS was BDT 2.95 compared to BDT 3.42 for the same period of 2012.

GP invested BDT 12.7 billion during 2013 for faster 3G rollout, 2G capacity increase and efficiency enhancement. With this, GP’s cumulative investment since inception now stands at BDT 243 billion. Meanwhile, GP, the largest contributor to exchequer  paid BDT 70 billion to the national exchequer during the year 2013 in the form of taxes, VAT and duties, including BDT 17.5 billion comprising of 3rd installment of 2G renewal and 1st installment of 3G spectrum fees. This sum up GP’s accumulated contribution to the national exchequer to BDT 355 billion since its inception.  

Regarding NBR’s claim against replacement SIM, the process of final report prepared by the NBR/LTU committee members deviated from original agreement. The industry is well aligned in this matter and is taking up with relevant stakeholders for an amicable resolution. On 23 January 2014 BTRC published an interim directive regarding quality of service for mobile operators. Necessary industry alignment and feedback to BTRC is under process whilst GP expects to be compliant with the parameters. 

The Board of Directors of Grameenphone Ltd. have recommended final dividend for the year 2013 in cash at the rate of 50% of the paid up capital (i.e. BDT 5 per share of BDT 10 each) based on the decision taken at the Board Meeting held on 10 February 2014. With this, the total cash dividend stands at 140% of paid up capital (i.e. BDT 14 per share of BDT 10 each) for the year 2013 (including 90% interim cash dividend i.e. BDT 9 per share that was paid in August 2013). The Shareholders as of the record date of 20 February 2014 will be entitled for this final dividend, which is subject to the Shareholders’ approval at the 17th AGM to be held on 9 April 2014.

Corporate Communications
Grameenphone Ltd.
Phone: 9882990