Banglalink’s Q1 revenues soar

Banglalink’s efforts to generate higher incomes paid off as its revenue earnings increased by 21.5 percent to Tk 5.8 billion in the first quarter of 2009, compared to Tk 4.8 billion in 2008. Growth in revenues was driven by revenue enhancement initiatives, improved network quality, and selective subscriber acquisitions, according to a financial report published Tuesday on the website of Orascom Telecom Holding, the Egypt-based owning company of Banglalink. Orascom Telecom’s financial report also reiterated the possibility of a consolidation with another operator in Bangladesh.

Naguib Sawiris, chairman and chief executive officer of Orascom Telecom, said: “We are evaluating various strategic initiatives to further enhance shareholder value, including potential in-market consolidation in Bangladesh.”

Banglalink holds on to its second position in the market in terms of subscriber base, increasing by 30 percent to reach 10.8 million subscribers as of March 2009 from 8.3 million in March 2008, according to Orascom’s financial report.

During January to March 2009, Banglalink invested Tk 151 crore, taking investment to Tk 7,400 crore.

Banglalink recorded EBITDA (earnings before interest, taxes, depreciation and amortisation) of Tk 147 crore until March 2009 and ended the quarter with an EBITDA margin of almost 26 percent, down from 28 percent during Q4 2008.

Recently Banglalink’s parent company Orascom said it is in talks with Telekom Malaysia, the majority stakeholder of AKTEL, for a possible merger in an aggressive bid to grab a substantial share of Bangladesh’s 46 million cellphone market.

Source: The Daily Star