Q1 2011 Grameenphone Ltd. May 2, 2011 Tore Johnsen Chief - - PowerPoint PPT Presentation

Q1 2011 Grameenphone Ltd.

May 2, 2011

Tore Johnsen

Chief Executive Officer

Grow th m om entum . . .

+ 6.7%

Aggressive Acquisition

• Addition of 2 million subscriptions, quarter

ended with nearly 32 million subscriptions

• Stable subscription market share
• Subsidy driven growth reaching lower

ARPU segment and rural people

Strong Revenue Grow th

• Voice revenue in line with subscription

growth

• Stable growth in data revenues
• Growth in revenue from mobile device

Slide 3

+ 33.8%

Getting closer to custom ers. . .

Dynam ic pricing

• Location-based discount offer in tariff
• Efficient utilization of network capacity
• Well accepted by over 1 crore customers

Postpaid revam p

• Prioritizing customer need
• Flexibility and comfort

New price plan for SME

• Introduced three new price plans
• Customized to cater various necessity

I ncrease rural footprint

• Over 186,000 retail outlets
• Micro-financing through BRAC and CARE
• Bangla contents in handsets

Slide 4

Slide 5

• Stable revenue growth from internet usage
• 2.4Mn internet users, 61% increase from a

year ago

• Internet mini-packs getting popular
• Investment in progress to improve data

quality

• Data usage trend indicates 3G preparedness

Stable grow th in data . . .

(in BDT Crore) Data Revenues

+ 4.4% + 41.7%

Em bracing future-proof technology . . .

Slide 6

Netw ork m odernization

• Network up-gradation in progress
• GP appreciates customers’ patient support

during temporary service disruptions

• Cutting edge technology and more

sophisticated in nature to cater increased service requirement

• Better customer experience
• Simpler network architecture

Driving business grow th

• Reduced power consumption
• Reduction of carbon footprint withdrawing

7,500 air conditioners

• 50% less space requirement for base

stations

1 4 th Annual General Meeting

Slide 7

• 2nd AGM, after getting listed with the

stock exchanges, held on 19 April 2011

• Conducted in compliance with all

regulatory requirements

• Around 100,000 annual reports

distributed within regulatory timeline

• Shareholders approved 2010 financial

statements and 120% total cash dividend (including 35% interim dividend) among

• ther agenda
• More than 41,000 shareholders having
• nline banking facility received dividend

within 24 hours of AGM completion

Q1 2011 Financials

Raihan Shamsi

Deputy CEO and Chief Financial Officer

• Growth driven by voice revenue
• Revenue growth in line with subscription

growth

• Subscriber-friendly campaigns
• New subscribers contributing in revenue

growth

• Revenues from mobile device

Revenues . . .

+ 5.5 %

(in BDT Crore)

Slide 9

+ 21.3 %

Total Revenues

EBI TDA m argin . . .

(in BDT Crore)

Slide 10

• Improved EBITDA driven by revenue

growth

• Heavy subsidy of BDT 209 crores
• Cost optimization initiatives in

progress

EBITDA EBITDA %

Net Profit after Tax . . .

• BDT 287 crores net profit after tax
• Devaluation of Taka against foreign

currencies resulted loss of BDT 29 crores

• Higher income tax expenses, BDT 309

crores in Q1’11

(in BDT Crore)

Slide 11

NPAT NPAT %

Earnings per Share . . .

Slide 12

(in BDT)

• Stabilized EPS in competitive market
• EPS affected by subsidy on SIM Tax
• Profitability maintained through business

growth

• Visible result of cost optimization

initiatives

Key Financial Figures . . .

Slide 13

Net Asset Value ( NAV) Net Operating Cash Flow ( NOCF)

NAV (BDT Crore) NAV/Share (BDT) NOCF (BDT Crore) NOCF/Share (BDT)

• Investment for network capacity and data

quality

• Implementing the vision of rural footprint
• Higher capex in Q4’10; waited till Q3’10 for

better deal for network modernization (Huaweii agreement)

• 12 solar BTS rolled out during the quarter
• Invested over BDT 16,000 crores since

inception

I nvesting for sustainable business . . .

(in BDT Crore)

Slide 14

Contribution to National Exchequer. . .

(in BDT Crore)

Slide 15

Payments against SIM Tax Payments against Corporate Tax Other payments to NBR (Import duty, VAT, etc) Payments to BTRC Withholding tax and other payments

• BDT 944 crore payments to the

national exchequer during the first quarter

• BDT 23 crore more payments against

corporate tax compared to last quarter

• Q4’10 import duty was higher due to

higher investment on network

• Since inception, Grameenphone’s

contribution to the National exchequer stands at BDT 19,446 crores

For every 100 Taka revenue GP earns,

• Govt. gets around 50

Taka from various sources

Regulatory Landscape

Challenges . . .

Slide 17

− Regulators published renewal framework in Jan’11. − Framework proposed upfront fee of $1.6Bn from four renewing

• perators

− Contains elements not relevant to renewal of license e.g. unified licensing, social obligation fund etc. − Renewing operators expressed reservation and provided feedback within timeline − Regulators have initiated dialogues with renewing operators

2G License Renewal

− Some progress has taken place regarding the 3G licensing − The regulators need to put up a development roadmap for the telecom industry, including clear guidelines for 3G licensing − A stable and long term telecom policy is a dire necessity to stimulate industry growth and enable the mobile operators to make further investments in new services and technologies like 3G

Q&A