BL reports 5pc revenue growth in Q2


4th August, 2016 07:29:57 printer

BL reports 5pc revenue growth in Q2

Mobile phone operator Banglalink has registered revenue of Taka 12.3 billion in quarter-2 (Q2) this year which is 5 percent more on year-on-year (YoY) basis.

Bangladesh's second largest operator witnessed the growth following the continued increases in voice revenue, primarily as a result of traffic growth, coupled with a 60 percent increase in data revenue, said a press release here today.

It said the data revenue growth was driven by 6 percent growth in data users and 178 percent growth in data usage, supported by expanding 3G coverage and smartphone penetration.

Despite aggressive price competition, Banglalink's ARPU increased 5 percent mainly on the back of growing voice and data traffic.

The relative deceleration of YoY revenue growth rate was primarily caused by the imposition of an incremental 2 percent supplementary duty on recharges from June 2016, on top of the additional 1 percent surcharge from March 2016.

In Q2, the company's underlying EBITDA, excluding one of which were mainly related to the Performance Transformation program and SIM re-verification costs, grew 19 percent to Taka 5.8 billion driven by both the revenue growth and Performance Transformation initiatives, particularly in human resources and commercial costs. As a result, the underlying EBITDA margin was 47.5 percent, which represents a 5.6 percentage-point increase.

Capex increased 3 percent to Taka 2.6 billion in Q2, while the LTM capex to revenue ratio was 23 percent. Banglalink continues to invest in efficient data networks, with 50 percent of the population covered by the 3G network at the end of Q2, up from 33 percent at year-end 2015.

Erik Aas, CEO of Banglalink, said: "As we transform ourselves into a digital organization, we are confident we can offer improved digital services to our customers."