GP profit drops 31% in H1

Grameenphone, the country's largest telecom operator, has reported a 31% year-on-year decline in net profit to Tk1,513 crore for the first half of 2025, largely due to a slower economy, the company said in a press release.

Despite the drop in earnings, the company's board has approved a 110% interim cash dividend – equivalent to Tk11 per share – for its shareholders, representing 98% of its H1 profit. The record date for the dividend has been set for 13 August.

Following the dividend declaration, GP shares rose by 1.15% to close at Tk300.20 on the Dhaka bourse today (17 July).

During the January–June period, Grameenphone's earnings per share (EPS) stood at Tk11.21, while total revenue declined by 3% year-on-year to Tk7,938 crore.

In its press release issued Wednesday night, GP said the performance was relatively resilient given the broader context, supported in part by increased consumer activity during the Eid session. 

In the April–June quarter alone, the company managed to register a modest 2% growth in profit, reaching Tk879 crore.

Yasir Azman, chief executive officer of Grameenphone, said, "We have been navigating a challenging economic downturn since the second half of last year that has put significant pressure on businesses across sectors, including telecom.

"Despite the tough macro-economic environment, our strategic measures are starting to yield results. This quarter, robust cost discipline alongside QoQ revenue growth contributed to a 2% improvement in net profit year-on-year."

He further said, "As part of our commitment to creating long-term value for our shareholders, we will be maintaining our dividend payouts to provide you with consistent and reliable returns. We are declaring an interim dividend of Tk11 per share for the first half of 2025." 

Otto Magne Risbakk, chief financial officer of GP, said, "The economy is showing some resilience, with the inflation starting to decline and forex remaining stable. On the other side, global trade tension is adding uncertainty, as the US market is important for the strong textile sector in Bangladesh."

"With this macro backdrop, we have focused on cost and capital discipline to protect margins while continuing to build on our leading position. Our costs dropped nearly 2% year-over-year, with declines in expenses. 

"On a YoY basis, we've registered a decline of 2.8% in total revenue, but a growth of 7% quarter-on-quarter, largely driven by higher data usage and increased activity surrounding the Eid period," he added. 

"If the current macro remains stable, I am hopeful that we will see good YoY growth in the second half of 2025," said the CFO.