Grameenphone's Q2 profit falls 14pc on revenue decline

Grameenphone has reported a nearly 14 per cent year-on-year decline in profit to Tk 7.6 billion in the second quarter (Q2) of 2026, due to lower revenue earnings amid a challenging macroeconomic environment.
The country's largest mobile operator recorded revenue of Tk 39.8 billion in the June quarter, marking a 3 per cent decline compared to the same quarter last year, according to the company's financial results released on Tuesday.
GP's earnings per share (EPS) stood at Tk 5.62 in the April-June quarter compared to Tk 6.51 in the same quarter last year, while the EBITDA margin remained strong at 58 per cent.
Its half-yearly profit also fell 6 per cent year-on-year to Tk 14.21 billion while revenue registered 2.5 per cent de-growth as the challenging macroeconomic environment weighed on business performance.
Despite lower earnings, the company's board declared a 105 per cent interim cash dividend for the first half of 2026, accounting for 100 per cent of the profit earned during the period.
Chief Executive Officer Yasir Azman, in a statement, said the company continued to demonstrate operational resilience despite a difficult business environment.
"We maintained a healthy EBITDA margin of around 58 per cent, demonstrating continued cost discipline and operational efficiency despite higher investments and a challenging operating environment," he said.
He noted that Grameenphone completed the deployment of 700 MHz spectrum across more than 1,000 sites nationwide during the quarter and was already witnessing encouraging early benefits from the rollout.
Highlighting network performance, Mr Azman said the company's infrastructure successfully handled the highest data traffic in its history during the FIFA World Cup when Argentina played against Austria, managing more than double the normal traffic while maintaining service quality.
He also said the operator continued supporting Bangladesh's digital transformation through initiatives including online safety education in partnership with UNICEF and expanding cybersecurity services through products such as GP Shield.
Chief Financial Officer Otto Risbakk said subscriber growth and higher data usage signalled improving business fundamentals.
He explained that although revenue declined year-on-year, the comparable quarter last year had benefited from the timing of two Eid festivals, creating a higher base.
He added that inflation remained elevated at around 9.2 per cent, but GP had managed to limit total cost growth to only 1.8 per cent through continued operational efficiency measures.
According to the CFO, EBITDA declined 6.1 per cent year-on-year due to the weaker top line, but disciplined cost management helped preserve profitability.
Mr Risbakk said GP continued to generate strong cash flows, maintained a debt-free balance sheet and followed a disciplined capital allocation strategy, enabling it to invest in network expansion while rewarding shareholders.
The company invested Tk 5.5 billion in capital expenditure during the quarter, excluding licence, lease and asset retirement obligations.
At the end of June, GP's total subscriber base stood at 86.3 million, with 52.7 million-or 61.1 per cent-using internet services, underscoring the sector's ongoing shift toward data-driven consumption.
Annual performance
In 2025, GP recorded its lowest profit in eight years at Tk 29.6 billion, mainly due to higher costs related to spectrum acquisition, network expansion, currency depreciation, and elevated tax burdens.
Annual revenue stood at Tk 158.06 billion, reflecting a marginal 0.21 per cent decline year-on-year.
Due to lower earnings, the company declared a 105 per cent final cash dividend, taking the total payout to 215 per cent for 2025, compared to 330 per cent in 2024.

babulfexpress@gmail.com