GreenPower Motor Company Inc. Q1 FY2024 earnings call

• Network investment: Focused on spectrum deployment, site rollout, and fiber connectivity increased to 41.5% in the past 2 years. Inaugurated a fast Tier 3 data center in Sylhet.
• Product initiatives: GPStar program expanded to 7,000 nationwide outlets, introduced first ever truly unlimited data offers with 10 OTT platforms bundled. 4G data users saw 15.2% year-on-year growth.
• Digital initiatives: Digitally engaged customers had 136% higher data usage, 24% DSTR contribution from digital channels. MyGP app has 8.2 million active users. Launched wellness broadband solution gpfi.
• Sustainability: 60% of supplier spend with partners committed to reducing carbon footprint; trained 184,000 children and 3,000 teachers on online safety; 19.8% of workforce are women.

S&T revenue for the quarter grew at 5.2%. EBITDA margin stood at 60.8%. Subscriber base increased by 2.9 million to reach 83 million, with 4G subscribers up 15.2% to 38.2 million. Data users grew 6.5% to 46.3 million. Total revenue for the quarter saw a year-on-year growth of 5.3%. The service ARPU increased by 1.7% year-on-year, driven by higher data consumption and digital product demand. 4G subscriber base now represents 46% of the total subscriber base.

No forward-looking statements were provided during the call as per local regulations. The earnings release and related documents can be found in the Quarterly Results section of the Investor Relations website.

• Macro challenges: Rising energy costs, broader inflation, dollar crisis. - Regulatory: Ongoing BTRC audit with next date fixed on 29th September 2024.

Q: Why GP is not getting back its subscriber market share?

A: GP is growing subscriber base, focusing on improving network experience, increasing ARPU for existing subscribers, and introducing new services to meet evolving customer needs. We are growing in subscriber base and quality subscribers, with improved top line growth in Q1 2024 compared to Q1 last year.

Q: What leads to the year-on-year 8% OpEx growth?

A: OpEx growth is primarily driven by energy cost hikes, higher sales and marketing costs due to growth initiatives, and revenue share from top line growth. Mitigation measures have been implemented despite these increases.

Q: Any explanation regarding previous year's tax adjustments?

A: The tax adjustment relates to the new Income Tax Act in 2023. Certain provisions were made in 2023 based on conservative IFRS application, and upon clarification of the act in the current quarter, these provisions were reversed.

Q: How do you see the potential of 5G rollout in Bangladesh and GP's priority in this regard?

A: GP's network is 5G-ready with doubled fiber connectivity. 5G rollout will focus on identifying use cases, especially for enterprise clients like industrial solutions. GP is learning from advanced markets and preparing for 5G when the appropriate use cases are identified.