Grameenphone (GP) Q2 2024 earnings summary

Executive summary

• Achieved strong subscriber growth, adding 2.3 million in Q2 2024 to reach 85.3 million, up 4.9% year-over-year, driven by digital innovation and customer-centric strategies.

• ARPU and EBITDA margin improved, with ARPU up 1.1% year-over-year and EBITDA margin at 60.4%, supported by higher data usage and digital product demand.

• Interim dividend of BDT 16 per share approved, representing 98.2% of profits and 160% of paid-up capital.

• Continued investment in digital infrastructure, AI, sustainability, and youth entrepreneurship, including the launch of the country's first Tier III data center.

• Interim financial statements for H1 2024 were audited with an unmodified opinion, highlighting regulatory and tax-related contingencies.

Financial highlights

• Total revenue grew 5.6% year-over-year to BDT 42.2 billion in Q2 2024 and BDT 81.56 billion for H1 2024.

• EBITDA increased by 4.3% to BDT 25.5 billion in Q2; net profit margin at 20.4% in Q2 and net profit for H1 2024 at BDT 21.99 billion.

• EPS for Q2 at BDT 6.4; basic EPS for H1 2024 was BDT 16.29.

• Operating cash flow reached BDT 20.9 billion in Q2, up 20.6% year-over-year; net operating cash flow for H1 2024 was BDT 37.90 billion.

• Net debt at minus BDT 13.4 billion, reflecting a strong cash position; net debt/EBITDA at -0.1x.

Segment performance

• 4G subscribers grew by 21% year-over-year, now nearly 50% of the base; 4G data users reached 42.5 million.

• Data revenue up 6.9% year-over-year; average data usage per user rose 3.4% to 7.6 GB.

• Roaming revenue surged 121% YTD, driven by digitalization and product simplification.

• Over one-third of revenue now flows through digital channels.

• Subscriber base grew 4.9% year-over-year to 85.3 million; active data users up 7.8% to 49.7 million.