Grameenphone posts 2pc Q2 profit rise, to pay out 98pc of H1 earnings

Despite a decline in revenue, the country's leading telecom operator Grameenphone secured a marginal year-on-year growth of 2.07 per cent in profit to Tk 8.79 billion in April-June (Q2) this year.

A reduction in income tax expenses mainly helped the company manage the marginal profit growth in Q2 this year.

Apart from making financial statements public for Q2 and for H1 through June this year, the company announced a 110 per cent interim cash dividend for the period ended in June this year.

The disclosure, however, could not spark much enthusiasm for the stock of Grameenphone during the trading session on Thursday.

Because of the corporate declaration, the stock was not subject to any price limit on the day, yet it experienced an insignificant rise of 1.15 per cent to Tk 300.2 per share on the Dhaka Stock Exchange.

Market operators said a year-on-year fall in revenue and profit of the company in the six months through June were major factors behind the stock's insignificant price appreciation.

Grameenphone's net profit was down 31 per cent year-on-year to Tk 15.13 billion in H1, 2025 following a plunge in operating profit during the period compared to the same period a year ago.

The operating profit slid 12 per cent year-in-year in H1, 2025 due to a surge in the cost of operation and maintenance, and an increased value of depreciation and amortization, among others.

In the second quarter through June, the revenue dropped 2.8 per cent year-on-year to Tk 41 billion as the company's main income generated from mobile communication declined during the period.

Alongside a decline in profit from mobile communication, the company's income from customer equipment also experienced a steep fall in Q2 this year, compared to the same quarter of the previous year.

The company said the year-on-year decline in revenue reflected the weaker macroeconomic situation during the quarter.

GP's operating expenses in Q2 almost remained the same as in Q2 last year and its other incomes, generated from finance income and foreign exchange gains, declined marginally year-on-year in the second quarter this year.

Subsequently, the company's profit before tax experienced a 6 per cent decline year-on-year to Tk 14.04 billion in Q2 this year. Nevertheless, Grameenphone finally managed to report a marginal profit growth for Q2, availing of the scope of reduced income tax payments.

The company's current and deferred tax payments decreased 23 per cent and 17 per cent in Q2 this year, compared to the same quarter of the previous year.

Consistent dividend payout

Grameenphone's interim cash dividend of 110 per cent will be translated into a disbursement of 98 per cent of the profit after tax, earned in the six months through June this year.

Shareholders will get Tk 11 for each share having a face value of Tk 10. As much as Tk 14.9 billion will be paid in dividends.

Except for 2023, the company distributed annual cash dividends at rates ranging from 99 per cent to 123 per cent between 2020 and 2024.

Rise in subscribers, data users

GP witnessed a marginal rise both in subscribers and active data users in Q2, 2025 from the same quarter of the previous year.

In Q2 last year, the number of subscribers was 85.3 million, which rose to 86.3 million in Q2 this year.

On the other hand, the number of total active data users rose to 50.30 million in Q2, 2025 from 49.7 million in the same quarter of the previous year.

The company's sponsor-directors hold a majority stake -- 90 per cent in the company --while institutions hold 6.50 per cent shares, foreigners 0.97 per cent and general investors 2.53 per cent, according to data updated until June.

The stock has been volatile recently. It fell to Tk 273.30 per share on the Dhaka bourse by May 25 from Tk 346.40 per share three months back and then climbed back up to Tk 300.20 per share by Thursday.

mufazzal.fe@gmail.com