Grameenphone's stock surged 1.32 per cent to Tk 245.2 per share on Thursday, despite the telecom operator having reported lower revenue in the first quarter of 2026 under macroeconomic pressures.
The country's largest mobile operator recorded total revenue of Tk 37.6 billion in the January-March quarter, marking a 2 per cent year-on-year decline compared to the same quarter last year.
Chief Financial Officer Otto Risbakk attributed the decline in revenue to persistent macroeconomic challenges and shrinking voice revenues, although steady growth in data services helped offset part of the impact.
Despite weaker top-line performance, net profit rose 4.4 per cent year-on-year to Tk 6.62 billion in the quarter ended March, supported by improved cost efficiency, lower depreciation and amortisation, and lower finance costs.
The telecom operator maintained a net profit margin of 17.6 per cent, with earnings per share (EPS) increasing to Tk 4.90 from Tk 4.69 a year earlier.
Operating expenses fell 2 per cent during the quarter, while the cost of goods sold dropped 7.3 per cent, contributing to overall efficiency gains.
"This outcome reflects strong financial discipline and improving earnings quality," said Risbakk, noting that lower operating expenses and reduced cost of goods sold helped cushion revenue pressure.
At the end of March, GP's total subscriber base stood at 84.2 million, with 49.2 million-or 58.4 per cent-using internet services, underscoring the sector's ongoing shift toward data-driven consumption.
Data usage trends remained strong, as active data users grew 1.7 per cent and average consumption rose 5.4 per cent year-on-year to approximately 7.7 GB per user.
However, voice revenue continued its downward trajectory, a trend largely balanced by increasing demand for mobile data services.
Yasir Azman, chief executive officer of GP, said the company navigated the quarter with resilience despite external challenges, maintaining stable financial and operational performance.
"Our EBITDA (earnings before interest, taxes, depreciation, and amortization) margin remains strong at around 58 per cent, reflecting operational stability in a softer revenue environment," he said.
He noted that GP continued investing in network modernisation, IT systems, spectrum, and artificial intelligence initiatives to build a scalable digital operating model.
The telecom operator recently acquired 700 MHz spectrum, expected to significantly improve rural coverage and indoor connectivity while supporting future data growth. The low-band spectrum allows wider coverage per base station, enabling faster, more cost-effective network expansion.
"We are actively transitioning towards an AI-first telco," Azman said, adding that benefits from ongoing innovation initiatives are expected to materialise in the coming quarters.
"As the new government accelerates digitisation efforts, we are well-positioned to be a key partner in building a sustainable telecom ecosystem that enables national digital transformation," he added.
Capital expenditure during the quarter amounted to Tk 3.6 billion, excluding licence, lease, and asset retirement obligations, as the operator continued investing in network expansion and digital capabilities.
The telecom operator's capital expenditure stood at Tk 13 billion in 2025. The strong balance sheet allows the company to continue to invest with a long-term view, even in a challenging environment.
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 the year, compared to 330 per cent in 2024.
babulfexpress@gmail.com