Grameenphone-the leading telecom company in Bangladesh has recently published the annual report for the year 2020. The total revenue of the company in 2020 was Tk 139.6 billion, which is a de-growth of 2.8% YoY from 2019 (Tk 143.7 billion).
The de-growth is mainly due to lower voice and interconnectivity revenues. Voice revenue declined by 7.2% in 2020 mainly due to the Covid-19 pandemic and a 5% increase of Supplementary Duty in the National Budget of FY 2020-21. Data revenue grew by 14.0% YoY mainly due to higher data consumption during the pandemic period. Despite the YoY de-growth in revenue, net profit after tax increased by 9.6% YoY mainly due to operational efficiency. The NPAT (net profit after tax) was Tk 37.8 billion which was Tk 34.5 billion in 2019. Total subscribers at the end of 2020 were 79.0 million which was a growth of 3.4% from 2019 (76.5 million).
Voice & Interconnection Revenue
Voice revenue declined by 7.2% mainly due to lower usage during the pandemic and a 5% increase of supplementary duty in the National Budget of FY 2020-21. The supplementary duty on voice calls was 10% which was increased by the government to 15% in the latest budget. Hence average minute per user was impacted due to the higher price of voice calls.
The above chart of Average Minute per User (AMPU) clearly shows a decline in voice calls for the last five years. This can be mainly attributed to higher usage of OTT services WhatsApp, Messenger, IMO, etc.
Data revenue increased by 14.0% driven by 1.8% GP internet subscriber’s growth & 60.6% data volume growth from 2019. Since the pandemic period, people had to rely more on data connectivity due to remote working systems. Another reason for the higher volume growth can be attributed to the increase in supplementary duty.
Data revenue has been growing steadily for the last five years. Data revenue of GP in 2020 was Tk 34,018 million which was Tk 14,400 million in 2016. Data revenue has been growing at a rate of 24.0% CAGR for the last five years. Data revenue contribution to total revenue also shows a larger trend in the making. GP Data Revenue’s contribution is getting bigger by years. Data revenue contributed to 24.4% of the total revenue in 2020 which was only 12.5% in 2016. In 2020, 41.3 million subscribers were internet users. Since it is only 52.3% of the total subscribers of the company, we are hopeful that this segment is about to grow more.
Given the recent trends in Average Minute per User and the data revenue growth, it can be said that the future growth in revenue will largely depend on data usage. Since only 52.3% of the total subscribers of GP use the internet there is room for growth in this segment. According to the annual report, the company will focus on experience & service bundling for high-profile groups and 4G handsets, USIM conversion, and segmented pricing for the mid-profile groups. Grameen Phone has rolled out 4,058 new 4G sites (Total in 2020: 14,000+) which will help the company in delivering better service for data revenue growth.
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