Written by The Banking Post
Dhaka, July 18: Grameenphone Ltd, the country’s largest telecom operator, reported a marginal 2.07 percent year-on-year increase in net profit to Tk 8.79 billion in the second quarter (April–June) of 2025, despite a decline in overall revenue during the period.
The profit growth was primarily attributed to a significant reduction in income tax expenses. According to the company’s financial disclosure released on Thursday, profit before tax fell by 6 percent to Tk 14.04 billion in Q2, but lower tax payments helped offset the impact on net earnings. Current and deferred tax expenses declined by 23 percent and 17 percent respectively compared to the same period last year.
Grameenphone also declared a 110 percent interim cash dividend for the first half (H1) of the year, translating to 98 percent of the half-yearly post-tax profit. Shareholders will receive Tk 11 per share of Tk 10 face value, amounting to a total payout of Tk 14.9 billion.
Despite the dividend declaration, the market response remained muted. Grameenphone shares rose just 1.15 percent to close at Tk 300.20 on the Dhaka Stock Exchange (DSE) on Thursday. Market analysts attributed the lukewarm reaction to the company’s overall weak performance in the first half of the year.
In the January–June period (H1), Grameenphone’s net profit declined by 31 percent year-on-year to Tk 15.13 billion, driven by a 12 percent fall in operating profit. The company cited increased operational and maintenance costs, along with higher depreciation and amortization charges, as reasons behind the drop in profitability.
Revenue also fell in the second quarter, down 2.8 percent year-on-year to Tk 41 billion, mainly due to lower earnings from mobile communication services and a sharp fall in income from customer equipment sales. The company blamed the decline on a weaker macroeconomic environment.
Operating expenses in Q2 remained largely unchanged compared to the same period last year, while other income—primarily from finance and foreign exchange gains—also declined slightly.
Despite the financial setbacks, Grameenphone recorded modest growth in its customer base. The number of subscribers rose to 86.3 million in Q2 2025 from 85.3 million a year earlier. Active data users increased to 50.3 million from 49.7 million over the same period.
As of June 2025, sponsor-directors held 90 percent of the company’s shares, institutional investors 6.50 percent, foreign investors 0.97 percent, and general investors 2.53 percent.
Grameenphone has maintained a consistent dividend payout policy in recent years, distributing between 99 and 123 percent of annual profits as cash dividends from 2020 to 2024, excluding 2023.
