Grameenphone (GP) has announced its highest-ever dividend payout, declaring a 330% cash dividend (Tk33 per share) for 2024, despite facing a challenging business environment. The telecom giant had already disbursed Tk16 per share as an interim dividend and will now distribute an additional Tk17 per share to its shareholders reportedly.
With a total dividend payout of Tk4,455 crore, GP’s distribution exceeds its annual net profit by 22.73%, marking the first time since 2018 that the company is paying out more than its earnings.
Analysts had predicted an increase in payouts as multinational companies in Bangladesh had held back dividends in 2022 and 2023 due to the forex crisis. As the situation improved in 2024, GP’s robust balance sheet allowed it to maintain a lucrative and predictable dividend policy, according to Chief Financial Officer Otto Risbakk.
Despite economic pressures, GP continues to prioritize shareholder returns, positioning itself as a stable investment option even amid market uncertainties.
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The telecom industry faced subscriber retention and revenue challenges in the second half of 2024, and GP was no exception.
- Total subscribers declined from 8.53 crore in June to 8.43 crore in December. However, the year-end figure was still 2.8% higher than 2023.
- Quarterly revenue saw a 7.2% drop year-on-year, but full-year revenue remained stable at Tk15,845 crore, declining only 0.17% from the previous year.
- Average revenue per user (ARPU) fell from Tk165 in April-June to Tk148 in October-December, reflecting cautious spending due to inflation.
Data Usage Trends and Economic Impact
- Active data users declined from 4.97 crore (58.3%) in June to 4.8 crore (56.9%) in December.
- Monthly mobile data consumption per user dropped significantly due to an internet shutdown during the July uprising, falling from 7.56 GB in April-June to 6.03 GB before rebounding to 6.86 GB by year-end.
Otto Risbakk remains optimistic about a recovery in mobile data usage and handset penetration as economic conditions stabilize.
Despite rising operational costs, GP managed to post a higher net profit of Tk3,631 crore in 2024, compared to Tk3,307 crore in 2023, thanks to lower income tax expenses and some one-off factors in the fourth quarter.
The company also highlighted its commitment to sustainability, with 77.5% of its spending directed toward suppliers while aiming to reduce its carbon footprint.
GP shares, with a face value of Tk10, saw a 0.47% increase, closing at Tk338.6 per share on the Dhaka Stock Exchange (DSE) on Tuesday, 4 December.
Grameenphone’s record dividend payout signals strong financial resilience, but macroeconomic challenges and shifting consumer behavior will continue to shape its future. The company expects a gradual rebound in mobile data demand and handset adoption as economic conditions improve.
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