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Grameenphone Q2 2026 results show recovery signs despite revenue dip

Bangladesh's largest mobile operator Grameenphone reported a year-on-year decline in Q2 2026 profits, but sequential improvements signal a potential turnaround. The results come amid ongoing currency volatility and regulatory pressures in the South Asian market.

  • Grameenphone's Q2 2026 net profit fell year-on-year but rose compared to the previous quarter
  • Revenue was impacted by Bangladesh's depreciating taka and higher operating costs
  • The company added new subscribers, indicating underlying demand remains resilient

Grameenphone, the Bangladeshi telecoms giant majority-owned by Norway's Telenor Group, has posted its second-quarter results for 2026, revealing a mixed picture of ongoing headwinds and nascent recovery. The company reported a net profit of BDT 8.2 billion for the three months ending 30 June 2026, down from BDT 9.1 billion in the same period last year. However, the figure marked a 6 per cent improvement on the first quarter of this year, offering investors a glimmer of hope that the worst may be passing.

Revenue for the quarter came in at BDT 37.5 billion, a decline of approximately 4 per cent year-on-year, driven largely by the continued depreciation of the Bangladeshi taka against the US dollar and elevated energy costs that have squeezed margins across the telecoms sector. The company's EBITDA margin slipped to 58 per cent from 60 per cent a year earlier, though management highlighted cost-control measures that helped stabilise operating expenses compared to Q1.

On the operational front, Grameenphone added 1.2 million net new subscribers during the quarter, taking its total customer base to over 85 million. Data usage per subscriber continued to climb, with average monthly consumption rising 12 per cent year-on-year as more users shift to 4G and early 5G services. The company noted that its network expansion in rural areas is beginning to pay off, though the pace of monetisation remains constrained by competitive pricing pressures.

For UK investors with exposure to emerging-market telecoms through funds or direct holdings in Telenor, the Grameenphone results underscore the persistent challenges of operating in currency-sensitive markets. The taka has lost roughly 8 per cent of its value against the pound over the past twelve months, eroding the sterling value of dividends repatriated to Oslo. Telenor shares on the Oslo Børs were largely unchanged on the day, suggesting the market had already priced in a difficult quarter.

Analysts at Nomura noted in a research brief that while the year-on-year comparison remains weak, the sequential recovery in profitability and subscriber growth offers a more encouraging narrative. 'The worst of the currency shock may be behind them, but the regulatory environment in Bangladesh remains unpredictable,' the note cautioned. A planned increase in spectrum fees and uncertainty over future tariff adjustments continue to cloud the medium-term outlook for the operator.

Why this matters: UK pension and investment funds hold significant stakes in Telenor, making Grameenphone's performance a bellwether for emerging-market telecom exposure in British portfolios. Currency volatility in Bangladesh directly impacts the value of dividends and returns for UK shareholders.

What this means for you: What this means for you: If you hold a global equity fund or a pension with exposure to Telenor, currency fluctuations in Bangladesh could affect your returns. The company's recovery may boost dividend prospects, but regulatory risks remain.

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