Release Date: April 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Grameenphone Ltd (DHA:GP, Financial) has seen an increase in both data usage and user growth in Q1 2025, driven by customized data packs and AI-backed personalized offers.
- The company launched the country's first-ever Volti roaming services, enhancing 4G call quality for customers abroad.
- Grameenphone Ltd (DHA:GP) introduced low-cost routers to bring affordable internet to rural communities, expanding household connectivity.
- The company reported a 5.1% year-on-year growth in its B2B segment, with ICT revenues seeing a remarkable growth of 34%.
- Grameenphone Ltd (DHA:GP) has maintained a solid EBITDA margin of around 57% despite challenging market conditions.
Negative Points
- The telecommunications industry in Bangladesh saw a decline in subscribers, with Grameenphone Ltd (DHA:GP) losing 1 million subscribers since July 2024.
- Revenue declined by 2.5% year-on-year in Q1 2025, reflecting cautious consumer spending due to weak macroeconomic conditions.
- Net profit after tax decreased by 53% year-over-year, impacted by lower revenue, higher costs, and foreign exchange losses.
- Operating expenses grew by 7.6% compared to the previous year, driven by network expansion and modernization efforts.
- The company faces increased supplementary duty in telecom services and higher sin taxes, burdening consumers with heavy taxes.
Q & A Highlights
Q: Can you provide an update on the subscriber base and data usage trends for Grameenphone in Q1 2025?
A: (CEO, Yasser Azman) In Q1 2025, we observed an increase in our subscriber base, growing by 2.2% year-on-year, with active data users increasing by 4.4%. Despite the industry losing around 10 million subscribers since July 2024, Grameenphone accounted for only 1 million of that loss. Data consumption grew by 11% quarter-on-quarter and 7% year-on-year, indicating a positive trend in data usage.
Q: How has the economic environment impacted Grameenphone's financial performance in Q1 2025?
A: (CFO, Oto Rizbach) The challenging macroeconomic environment has led to a revenue decline of 2.5% year-on-year. However, the decline has slowed from 5% in Q4 2024 to 2.5% this quarter, with signs of economic recovery. Despite higher operating expenses due to network expansion, we maintained a solid EBITDA margin of 57%.
Q: What strategic initiatives is Grameenphone undertaking to drive growth and innovation?
A: (CEO, Yasser Azman) We are focusing on IT and network infrastructure transformation, decentralizing data centers, and integrating AI for smarter digital experiences. We launched the country's first Volti roaming services and a gamified customer delight program. Our efforts also include expanding 4G adaptation and introducing low-cost 4G cloud phones to enhance internet penetration.
Q: How is Grameenphone addressing sustainability and corporate responsibility?
A: (CFO, Oto Rizbach) We have adopted ICB standards IFRS S1 and S2 for sustainability reporting, making us the first listed organization in Bangladesh to do so. Our efforts focus on reducing environmental impact, advancing digital inclusion, and fostering a sustainable future. We are also working on policy reforms for corporate power purchase agreements to support decarbonization goals.
Q: What are the key challenges and opportunities Grameenphone faces in the current market?
A: (CEO, Yasser Azman) The main challenges include navigating the economic downturn and regulatory changes. However, opportunities lie in leveraging AI and cloud technologies, expanding our digital services, and enhancing customer experience. We are optimistic about the gradual economic recovery and are well-positioned to capture growth as market conditions improve.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
