AKTEL makes a comeback

AKTEL, the third largest mobile operator, recorded profits worth Tk 147 million at the end of September, rising from a loss of Tk 737 million in the same period last year.
However, the company recorded a loss of Tk 472 million in the third quarter (July-September) compared to the second quarter (April -June) this year. In Q2, the company recorded profits worth Tk 598 million.
AKTEL’s EBITDA (earnings before interest, taxes and depreciation) margin declined to 17 percent in Q3 from 47 percent in Q2, which mainly accounted for the losses incurred.
“The EBITDA declined quarter-on-quarter due to the higher subscriber acquisition costs in Q3. The quarter recorded a loss of Tk 472 million,” according to the financial report of Axiata, the Malaysia-based controlling company of AKTEL.
AKTEL added 1.7 million customers in Q3. The company’s total subscribers reached 11.07 million at the end of September.
AKTEL saw continued revenue growth of 7 percent in the period, representing the highest quarterly revenue achieved of Tk 4.89 billion in Q3 from Tk 4.5 billion in Q2.
The aggressive marketing strategy in Q3 will be tempered with more prudent acquisition efforts and a retention strategy moving forward into Q4, according to the company’s financial report.
Alongside this, there will be a continued focus on distribution and services whilst increasing brand presence. Cost optimisation will also be a priority, including infrastructure-sharing efforts, says the report.
Axiata Group Berhad (formerly known as TM International) is controlling interests in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia with significant strategic stakes in India and Singapore.
Presently, Axiata controls 70 percent of AKTEL, while Japanese NTT DoCoMo controls the remaining 30 percent.
In the six-operator market, Grameenphone is the market leader with 21.98 million customers, followed by Bangalink with 12.13 million at the end of September. More than 50 million subscribers were under the mobile networks at the end of September.

Source: The Daily Star