For the difficult fiscal year 2024, Grameenphone (GP) declared on Monday, February 3, that it will pay the largest cash dividends ever, totaling 330%, or Tk33 per share. It has already paid an interim dividend of Tk16 per share and will offer shareholders an additional Tk17 for the previous year, according to corporate statements. The corporation would pay out cash dividends of Tk4,455 crore in 2024, which is 22.73% more than its yearly net profit. For the first time since 2018, the corporation will distribute dividends that exceed its yearly profit.
Since international corporations paid out less in 2022 and 2023 due to a challenging foreign exchange position in Bangladesh, which significantly improved in 2024, analysts were expecting an accelerated dividend payout. Otto Risbakk, the chief financial officer of GP, credited the company’s success to its robust balance sheet, which enabled it to maintain its “long-term perspective alongside a lucrative and predictable dividend policy, despite a challenging economic environment.”
Revenue and customer retention issues in the telecom sector, particularly in the second half of the year, were mirrored in the operations of the leading mobile operator. From 8.53 crore in June, its subscriber number fell to 8.43 crore in December. At the conclusion of the year, the number of GP subscribers was still 2.8% more than it was a year earlier. Additionally, GP’s sales decreased by just 0.17% to Tk15,845 crore during the October-December quarter, but the greater revenue from the prior quarters helped offset a 7.2% year-over-year decline in revenue. Recognizing the negative effects on business caused by “rising inflation and continuously decreasing GDP,” GP CEO Yasir Azman stated, “We remain focused on delivering long-term value and stability for our investors.” As part of GP’s plan to give stockholders steady and dependable profits, notwithstanding transient market swings, he also pledged alluring dividends. GP’s average monthly revenue per user fell from Tk165 in the April-June quarter to Tk148 in the October-December quarter.
Otto Risbakk blamed users’ cautious spending, particularly in the data category, to a difficult macroeconomic climate and high inflation. Approximately 4.97 crore, or 58.3%, of GP subscribers were active data users as of June of last year. It fell to 4.8 crore, or 56.9% of all subscribers, in December. GP users used 7.56 GB of mobile data per month during the April–June quarter. It fell to 6.03 GB as a result of the internet outage during the July revolt, but by the end of the year, it had rebounded to 6.86 GB.
According to GP comments, Otto Risbakk is optimistic about a slow recovery in the situation as the economy improves, mobile data usage soars, and device penetration picks back up. With the exception of financing charges, nearly every expense went up in 2024. A lower income tax expense enabled GP to report a greater net profit of approximately Tk3,631 crore for 2024, compared to Tk3,307 crore the year before, despite an annual fall in operating and pre-tax profits. Without providing further details, Otto Risbakk expressed gratitude for the influence of a few isolated events during the fourth quarter.
Yasir Azman reaffirmed his emphasis on innovation, sustainability, and the use of artificial intelligence, saying that these matters “are on top of the company’s strategic agenda.” He added that the company’s remarkable 77.5% expenditure on suppliers was motivated by a drive to lower carbon emissions. “We are integrating sustainability into every aspect of our supply chain to ensure that standards are met across the board,” he said. On Tuesday, December 4, GP shares, which had a face value of Tk10, increased by 0.47% to settle at Tk338.6 per on the Dhaka Stock Exchange.
Source: The Business Standard
