125% cash dividend for 2023

BM Report:

Grameenphone Ltd., the leading Bangladeshi mobile operator, declared a 125% cash dividend for 2023, signaling a cautious approach despite rising earnings per share (EPS). This move comes amidst intense competition and declining market share, raising questions about the company’s long-term profitability trajectory.

Financial Performance Snapshot includes- EPS growth, 10% year-on-year to Tk 24.49, marking a positive trend reversal; cash flow per share, down 5% to Tk 44.88, highlighting potential operational bottlenecks; net asset value per share (NAVPS), stable at Tk 49.39, indicating consistent asset management.

While the 125% payout translates to Tk 30.62 per share, it falls short of the 220% distributed in 2022. This conservative approach may prioritize reinvestment for network expansion and market competitiveness, particularly given Grameenphone’s recent decline in subscriber base.

Investors might welcome the dividend announcement, but some may express concerns about the lower payout compared to past years. Analysts will keenly observe how Grameenphone utilizes the retained earnings to navigate the competitive landscape and regain market share.

Grameenphone’s performance hinges on its ability to balance dividend distribution with strategic investments in network infrastructure and innovative offerings. Balancing shareholder expectations with the need for long-term growth will be crucial for the company’s future success.