Grameenphone posts higher profit despite revenue decline in Q1
According to a company disclosure, the earnings growth was supported by lower depreciation and amortisation costs, reduced finance expenses, and improved operational efficiency across the business.
Grameenphone, the country's largest telecom operator, reported a 4.40% year-on-year rise in net profit to Tk662 crore in the January-March quarter of 2026, up from Tk634 crore in the same period last year, even as revenue declined.
According to a company disclosure issued today (22 April), the earnings growth was supported by lower depreciation and amortisation costs, reduced finance expenses, and improved operational efficiency across the business.
Despite macroeconomic pressures, earnings per share (EPS) increased to Tk4.90 from Tk4.69 a year earlier, reflecting stronger profitability per share.
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Revenue, however, fell 2.0% year-on-year to Tk3,758 crore from Tk3,835 crore, largely due to challenging economic conditions. The decline was partially offset by growth in data services, which helped cushion weaker voice revenue.
The company maintained a strong EBITDA margin of around 58%, although it recorded a slight 1.5% decline year-on-year due to lower revenue. Operating expenses dropped 2%, while cost of goods sold fell 7.3%, indicating tighter cost control without affecting service quality.
Grameenphone's subscriber base stood at 8.42 crore at the end of the quarter, with 4.92 crore users (58.4%) using internet services. Active data users grew 1.7%, while average data consumption rose 5.4% to about 7.7 GB per user, underscoring continued digital adoption.
Chief Executive Officer Yasir Azman said the company remained resilient amid external challenges and continued to invest in network expansion, IT infrastructure, spectrum, and AI-driven transformation. He noted that Grameenphone is advancing towards an AI-first telecom model as part of its broader digital strategy.
He also highlighted the recent acquisition of 700 MHz spectrum, which is expected to improve rural coverage and strengthen indoor connectivity, helping bridge long-standing service gaps and support future data demand.
Chief Financial Officer Otto Risbakk said that while revenue was affected by macroeconomic pressures, disciplined cost management helped sustain profitability. He added that earnings quality improved during the quarter, with efficiency gains achieved without compromising customer experience or network performance.
In 2025, the company declared a 105% final cash dividend, bringing total dividend payout to 215%, including the interim dividend, reflecting strong cash generation despite a challenging operating environment.
However, on a full-year basis, Grameenphone's profit after tax declined 18.53% year-on-year to Tk2,958 crore in 2025, down from Tk3,631 crore in 2024, as weaker consumer spending, rising costs, and cautious business activity weighed on earnings.
