Bangladesh Submarine Cables’ profit declines by 34 percent

Bangladesh Submarine Cables PLC (BSCPLC) has seen a sharp decline in revenue and profit for the financial year ending June 30, 2024.

The company’s profit declined 34 percent year-on-year to Tk 182.99 crore in FY24.

This sharp decline resulted in the company’s diluted earnings per share (EPS) falling to Tk 9.02 this year from Tk 13.75 in the previous year.

BSCPLC attributed the EPS decline to rising operating and maintenance costs, as well as increased bad debt provisions.

The company’s revenue declined 22 percent to Tk 398.54 crore from Tk 515.49 crore in the previous year.

The company attributed this decline to reduced profits from the rental of international private lines (IPLC) and IP Transit services, increased market competition and the prolonged disconnection of defaulting customers.

IPLC is a private point-to-point line used by an organization to communicate between offices and used for Internet access, data exchange, video conferencing, and other forms of communication.

“In addition, an unexpected cable cut on the SEA-ME-WE 5 submarine route near Indonesia severely impacted operations,” the company said in its audited financial statement.

Despite the decline in profits, BSCPLC announced a 40% payout to shareholders. cash dividend, the lowest since 2021.

Additionally, net operating cash flow per share (NOCFPS) improved to Tk 17.63, compared to Tk 14.68 in the previous year, on the back of better revenue collection from customers.

Bangladesh Submarine Cables PLC (BSCPLC) operates under the Posts and Telecommunications Division and manages the country’s submarine cables.

Established in 2008 after the separation of SEA-ME-WE 4 from the now defunct BTTB, BSCPLC was listed on the Dhaka and Chittagong stock exchanges in 2012. It offers IP transit services and has an authorized capital of Tk 1,000 crore.

Shares of BSCPLC fell 0.95 percent to Tk 135.9 at 12:34 pm on the Dhaka Stock Exchange today.