Release Date: July 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Grameenphone Ltd (DHA:GP, Financial) reported a quarter-on-quarter revenue growth, translating into a year-on-year 2% NPAT improvement despite challenging macroeconomic conditions.
- The company has modernized its mobile network core, moving to a cloud-native architecture, which is fully prepared for 5G standalone and powered by AI for enhanced performance.
- Digital revenue rose by 13%, with nearly 30% of total revenue now flowing through digital channels, indicating strong digital adoption.
- Grameenphone Ltd (DHA:GP) declared interim dividends this quarter, maintaining its commitment to providing consistent and reliable returns to shareholders.
- The company achieved a fourfold year-on-year increase in Hajj roaming revenues and usage, reflecting successful customer impact and commercial success.
Negative Points
- The increase in supplementary duty on telecom services and SIM tax has burdened consumers with higher costs.
- Despite revenue growth, the ARPU in the second quarter is still about 5% below the ARPU from the same quarter last year.
- The macroeconomic environment remains uncertain, with potential impacts from new tariffs and slower GDP growth predictions.
- Grameenphone Ltd (DHA:GP) plans to be more cautious with CapEx due to uncertainties surrounding the low-band auction and macroeconomic conditions.
- The company faces cost pressures from the need to continuously upgrade its network and IT infrastructure to support data growth and cybersecurity requirements.
Q & A Highlights
Q: How has Grameenphone managed to achieve revenue growth despite the challenging economic environment?
A: Yasir Azman, CEO, explained that strategic measures have started to yield results, leading to quarter-on-quarter revenue growth and a 2% year-on-year NPAT improvement. The modernization of their mobile network and a shift to a cloud-native architecture have prepared them for 5G, enhancing efficiency and innovation.
Q: What are the key drivers behind the increase in digital revenue?
A: Yasir Azman, CEO, highlighted that digital revenue rose by 13%, with nearly 30% of total revenue flowing through digital channels. This growth is driven by the expansion of digital products and capabilities, including new streams like DoB, Content, EdTech, and GpFi, which are gaining traction.
Q: Can you elaborate on the impact of AI on Grameenphone's operations?
A: Niranjan Srinivasan, CIO, stated that Grameenphone aims to become an AI-native telco, embedding AI in operations, network planning, and customer journeys. This transformation is expected to drive real-time, hyper-personalized experiences and operational efficiency.
Q: How has Grameenphone's financial performance been in Q2 2025?
A: Otto Risbakk, CFO, reported a 7% year-on-year revenue growth, with EBITDA margins back to 60% and net profit margins at 21.4%. The company has maintained cost discipline, resulting in improved cash flow margins of 52.1%.
Q: What are Grameenphone's plans for future investments and growth?
A: Otto Risbakk, CFO, mentioned that while the company will be cautious with CapEx due to macroeconomic uncertainties, they are prepared to invest in future technologies like low-band and 5G to create value for customers. The focus will be on maintaining ARPU growth in line with inflation to support these investments.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
