ADN Telecom, a publicly traded telecommunications service provider, is set to bolster its business expansion by investing Tk 4.50 million in a proposed subsidiary, ADN Media Limited.
The initial paid-up capital of the new entity will be Tk 10 million, subject to the fulfillment of all regulatory requirements, the company said in a stock exchange filing on Wednesday.
AND Telecom has decided to subscribe to 45 per cent of the proposed subsidiary’s paid-up capital, amounting to Tk 4.50 million.
A company official said ADN Media would be an interactive digital media platform which would open up numerous business opportunities.
In recent months, ADN Telecom has been investing heavily in various projects as part of its broader business expansion strategy.
Following the announcement of the news, its stock price edged up 1.30 per cent to close at Tk 117.20 on Wednesday.
RECENT INVESTMENTS
Last month, ADN Telecom acquired another 40 per cent stake in ADN International Gateway (AIG), a broadband service provider, for Tk 11.34 million.
AIG is a private limited company holding an International Internet Gateway (IIG) licence issued by the Bangladesh Telecommunication Regulatory Commission (BTRC).ADN Telecom and ADN International Gateway are two major concerns of the AND Group. ADN Telecom first acquired a 40 per cent stake in AIG in 2021.
This vertical acquisition has increased ADN Telecom’s current shareholding from 40 per cent to 80 per cent in ADN International Gateway, making AIG a subsidiary of ADN Telecom.
In June this year, ADN Telecom expanded its portfolio by acquiring a 10 per cent stake in Shohoj, an online ticketing platform, with an investment of Tk 120 million.
At that time, Company Secretary Md. Monir Hossain said ADN Telecom invested in Shohoj, having been encouraged by its good business potential.
Shohoj launched as an online ticketing platform in Bangladesh in 2014 under the brand name “Shohoz”. It holds the number one position in terms of the usage of its ticketing software by long-distance bus operators as well as use of its web-based ticketing systems.
On top of that, “Shohoz” exclusively manages the online integrated ticketing platform of Bangladesh Railway.
In July last year, ADN Telecom also acquired 60 per cent shares of SOS Developments, a fire security service provider, at a cost of Tk 20 million for 10 years.
In May this year, the company decided to construct a 13-storey commercial building and set up a data centre there in the capital’s Badda area.
In September this year, the company also decided to acquire a 235-decimal plot of land in Gazipur at a cost of Tk 23 million for future business expansion.
FINANCIAL PERFORMANCE
After a record annual profit for FY’23, ADN Telecom’s consolidated first quarter (July-Sept) profit dropped 32 per cent year-on-year to Tk 44.42 million.
Its revenue also declined 10 per cent to Tk 298.68 million in July-September period of this year.
The company explained that revenue was higher in the same quarter a year ago due to a payment from its client Bangladesh Police, but the service was discontinued.
It said the revenue decline was temporary. The cost of operation was high, affecting the quarterly earnings.
Its total operating expenses rose nearly 12 per cent to Tk 75.33 million while finance expenses more than doubled year-on-year to Tk 6.87 million in the July-September quarter.
The income is expected to get a boost soon as the investments made will bear fruits, said the company in its earnings note.
source: thefinancialexpress.com.bd
ADN telecom invest media limited investment
