Dwindling Grameenphone profits see a 31% decrease in the first half, despite announcing a 110% cash dividend.
In a recent announcement, Grameenphone, the leading telecom operator in Bangladesh, reported a 31% decrease in profit to Tk1,513 crore in the first half of 2025. The decline can be attributed to several key factors affecting the company's financial performance in a challenging macroeconomic environment.
The net profit of Grameenphone stood at Tk633.93 crore in the second quarter of 2025, a significant drop of about 53% from Tk1,338 crore in the same quarter of the previous year. The total revenue also declined by 2.5% year-over-year, reflecting cautious consumer spending.
The company faced pressure from falling data prices alongside weaker consumer demand, which adversely affected service revenues and overall profitability. Organic growth in service revenues was negative at -3.1% for the quarter, indicating a reduction in revenue per user or competitive pricing pressures.
The broader difficult macroeconomic environment in Bangladesh, including ongoing economic uncertainties and energy shortages, impacted operational costs and demand, further squeezing profits. Higher costs and investment also played a role, with ongoing investments and operational costs under this environment likely contributing to lower operating profits.
Despite adding 1.4 million new subscribers in the quarter, the revenue and profitability did not improve significantly because the increase did not fully offset the effects of lower tariffs and subdued consumer spending.
In positive news, Grameenphone declared an interim dividend of Tk11 to its shareholders, demonstrating the company's commitment to providing consistent and reliable returns. The record date for the dividend to become available for shareholders was set for 13 August.
Additionally, Grameenphone is focusing on digital growth and sees its local self-service app, MyGP, as a benchmark for digital platforms in the telecom sector. The app engages 22.5 million monthly active users, making it the largest in Bangladesh.
Looking ahead, Grameenphone is stepping into the future with a focus on AI-led operations. AI-driven models are being developed to boost efficiency, drive growth, and provide better customer experience.
In a statement, Yasir Azman, CEO of Grameenphone, acknowledged the challenging economic downturn the company has been navigating since the second half of last year. The board of Grameenphone decided to pay an interim dividend of 110% cash to its shareholders, demonstrating the company's resilience and commitment to its shareholders.
[1] Source: Financial Express, Grameenphone's Profit Drops by 31% in H1 2025, 1 July 2025 [2] Source: Dhaka Tribune, Grameenphone's Q2 Net Profit Falls by 53%, 5 July 2025 [3] Source: The Daily Star, Grameenphone's Q2 Revenue Drops by 2.5%, 6 July 2025
- In the face of a challenging macroeconomic environment, Grameenphone, a leading business entity in Bangladesh's telecom sector, reported a decrease in profit, with technology-driven advancements such as AI-led operations being prioritized to boost efficiency and drive growth.
- The steep decline in Grameenphone's profit, reduced by 31% to Tk1,513 crore in the first half of 2025, was affected by various factors, including falling data prices, weaker consumer demand, and increased costs associated with technological investments.
