GP’s net profit increase helped by lower acquisition costs, handset subsidies

12 Feb 2009

Bangladesh’s largest mobile operator by subscribers, GrameenPhone (GP), has reported that its net profit climbed to BDT3.2 billion (USD47.4 million) in 2008, up from BDT1.3 billion the year before. GP added 4.5 million new customers in 2008 – down from six million the previous year – but reduced customer acquisition costs and a reduction in handset subsidies from BDT800 to BDT300 per connection drove up net income. GP’s annual revenues were up by around 13% in the year, despite monthly ARPU falling by 7% compared to 2007. GP, a subsidiary of Norway’s Telenor, remains the clear leader in the six-strong mobile operator market with 20.99 million GSM subscribers at end-2008.

Bangladesh, GrameenPhone (GP)