Despite the challenging macroeconomic environment, Grameenphone secured a 10 per cent year-on-year growth in profit to Tk 36.4 billion in 2024, the highest in three years, supported by operating efficiency.
The leading telecom operator declared a 170 per cent final cash dividend, buoyed by the profit growth, resulting in 330 per cent cash dividends in total for 2024. That is the highest-ever dividend by GP since its listing.
The return on investment promised by the company is likely to regain confidence of shareholders who were unhappy with the lowest cash dividends paid for 2023 in 13 years.
The dividends for 2024, including 160 per cent interim cash dividends disbursed earlier, will be equivalent to 122.73 per cent of the profit after tax, earned in the year.
The telecom operator made a profit of Tk 26.89 per share in 2024, up from 24.49 per share the year before, according to a stock exchange filing on Tuesday.
However, investors will get Tk 33 per share for 2024, meaning the telecom operator will provide an additional Tk 6.11 per share from retained earnings or the reserve.
Due to the record dividend declaration, GP’s dividend yield will reach a 12-year high to 9.75 per cent in 2024.
However, GP reported revenue of Tk 150.94 billion for 2024, registering a 4.9 per cent year-on-year de-growth, owing to cautious consumer spending, particularly on data, in an adverse business climate. High inflation is another major factor behind low revenue.
“The current economic climate has brought numerous challenges, including rising inflation and decreasing GDP, putting significant strain on businesses across various sectors,” said Yasir Azman, CEO of Grameenphone, in a statement issued on Tuesday.
“We have experienced some pressure on both top-line and bottom-line growth during the second half of the year. I want to emphasize that we remain focused on delivering long-term value and stability for investors.
“We expect revenue will gradually improve as the economy recovers and growth in mobile data usage and handset penetration resumes,” said Mr Azman.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to Tk 96 billion in the year. GP maintained an EBITDA margin of over 60 per cent in 2024.
During the year, the mobile operator’s subscriber base increased by 2 million to 84.3 million. Of them, 56.9 percent or 48 million subscribers are using internet services.
“Sustainability, innovation, and AI are on top of GP’s strategic agenda. We are integrating sustainability into every aspect of our supply chain to ensure that standards are met across the board,” said Otto Risbakk, chief financial officer of GP.
“We will continue investing in cutting-edge technology, expanding our reach, and enhancing our customer experiences.
“Over the next few years, we’ll be realizing the advantages of our proactive investment in platforms and artificial intelligence that will lead to automated operations, autonomous network management, and advanced customer engagement,” added Mr Risbakk.
GP invested more than Tk 18 billion in 2024 for better network coverage and expansion, focusing mainly on 4G network, along with 2600 MHz spectrum deployment to ensure improved network experience for customers.
“The strong balance sheet allows us to continue to invest with a long-term view, even in periods with a challenging economy, like this year, and it also provides the basis for an attractive and predictable dividend policy,” said the CFO.
The benefits of pioneering investments in various innovative platforms and artificial intelligence (AI) will be visible in the coming years, he added.
Stock Performance
Having remained stuck on the floor at Tk 286.7 per share on the Dhaka Stock Exchange for more than 18 months, GP’s stock slid gradually to Tk 222.2 each share in June last year after the removal of the price restriction in February of the year.
After the fall of the Hasina-led government on August 5, the stock surged 40 per cent within 10 days to reach Tk 387 per share due to over-enthusiasm among investors. Since then, GP’s stock has experienced a correction.
It closed at Tk 338.6 per share on the prime bourse on Tuesday, gaining 0.47 per cent over the previous day. https://today.thefinancialexpress.com.bd/stock-corporate/gp-to-pay-record-dividends-for-2024-compensating-for-last-years-poor-payout-1738690910
