Business Report :
Bangladesh Submarine Cables PLC (BSCPLC) reported a sharp decline in revenue and profit for the fiscal year (FY) ending June 30, 2024.
The company’s profit plunged 34 percent year-on-year to Tk 182.99 crore in FY24.
This sharp contraction caused the company’s diluted earnings per share (EPS) to fall to Tk 9.02 this year from Tk 13.75 the previous year.
BSCPLC attributed the decline in EPS to rising operating and maintenance costs, along with increased provisions for bad debts.
The company’s revenue fell 22 percent to Tk 398.54 crore from Tk 515.49 crore the previous year.
The company attributed the drop to reduced earnings from international private leased circuit (IPLC) rent and IP Transit services, heightened market competition, and the prolonged disconnection of defaulted clients.
IPLC is a point-to-point private line used by an organisation to communicate between offices and used for internet access, data exchange, video conferencing and other forms of communication.
“Also, the unexpected cable cut in the SEA-ME-WE 5 submarine route near Indonesia severely impacted operations,” said the company in its audited financial statements.
Despite the fall in earnings, BSCPLC announced a 40 percent cash dividend for its shareholders, the lowest since 2021.
Additionally, the company’s net operating cash flow per share (NOCFPS) improved to Tk 17.63, up from Tk 14.68 the previous year, thanks to better revenue collection from clients.
Bangladesh Submarine Cables PLC (BSCPLC) operates under the Posts and Telecommunications Division and manages the country’s submarine cables.
Formed in 2008 following the separation of SEA-ME-WE 4 from the defunct BTTB, BSCPLC was listed on the Dhaka and Chittagong stock exchanges in 2012. It offers IP transit services and holds Tk 1000 crore in authorised capital.
Shares of BSCPLC dropped 0.95 percent to Tk 135.9 as of 12:34 pm on the Dhaka Stock Exchange on Sunday.