Grameenphone reported a 53 percent drop in net profit in the first quarter of 2025 as sharp declines in data pricing and continued macroeconomic pressures offset subscriber growth and higher usage, despite only a modest fall in overall revenue.

Net profit after tax fell to Tk 633.93 crore in January-March, down from Tk 1,338.03 crore in the same period a year earlier.

Earnings per share declined to Tk 4.69 from Tk 9.91, according to the company's financial statements.

Revenue for the quarter dropped 2.5 percent year-on-year to Tk 3,834.52 crore, from Tk 3,932.94 crore.

The company attributed the decline to weaker pricing in the data segment, which saw a 17 percent fall in rates.

"Although we're still navigating through the challenges of this difficult macro environment, with the strategic measures we've put in place, our financial performance is improving," said Yasir Azman, chief executive officer of Grameenphone, in a statement.

"Data user and usage growth remained strong this quarter, but revenue fell year-on-year due to a sharp 17 percent drop in data pricing."

Grameenphone reported a total subscriber base of 8.48 crore, with 57 percent using internet services.

Otto Magne Risbakk, chief financial officer, said the drop in profit was partly due to a one-off tax reversal in the previous year. Excluding that, net profit fell 24.9 percent.

"The decline mainly reflects lower revenue, higher costs and depreciation from continued network modernisation, and higher finance costs due to balanced sheet restatements from a weaker BDT," he said.

Despite the fall in net earnings, Grameenphone maintained an EBITDA of Tk 2,200 crore, with a margin above 57 percent. 

Average revenue per user (ARPU) rose during the quarter after two consecutive quarters of decline, indicating a potential stabilisation in consumer spending.

The company said it is continuing to invest in network and IT transformation as part of its shift towards a more digital-centric model.

"We are stepping into a new era of innovation through the transformation of our IT and network infrastructure, laying the foundation for a data- and digital-centric economy in the country," Azman said.

Grameenphone also reported progress on its digital inclusion initiative, saying it had trained over 220,000 individuals in the quarter, most of them women from marginalised communities.