Grameenphone Ltd registered higher revenue in the April to June quarter of 2024, yet its profit dropped mainly due to higher tax expenses.

The board of the company, however, recommended a 160 percent interim cash dividend to be paid out in the quarter.

Revenue for the largest mobile phone operator of Bangladesh rose around 6 percent year-on-year to Tk 4,223 crore in the second quarter of 2024, according to the financial report.

The profit was supposed to be higher thanks to a rise in turnover and a decline in finance costs. However, the bottom line plunged around 28 percent to Tk 861 crore.

Although finance costs fell 78 percent to Tk 115 crore, it could not offset the higher income tax expenses.

Deferred tax expenses increased to Tk 634 crore in the second quarter whereas its deferred tax income was Tk 93 crore in the same period last year.

"The macroeconomic headwinds that have been prevalent since last year exacerbated due to the central bank's continued tightening policies, calibration of energy prices while reducing subsidies, the increase of supplementary duties and the effects of natural disasters such as cyclones and flood," said Yasir Azman, CEO of Grameenphone, in a press release.

"Despite macroeconomic challenges, the company remained focused on its growth strategies and showed stability in its performance by delivering consistent growth in revenue and earnings before interest, tax, and depreciation."

The operator said its MyGP app continues to be the largest local self-service app in Bangladesh, with a staggering two crore monthly active users.

GP has focused on the use of artificial intelligence technologies and has introduced smart and adaptive strategies such as deploying an AI-powered dynamic network optimisation system that delivers seamless connectivity based on real-time movement.

The company acquired 23 lakh new subscribers, raising the total to 8.53 crore at the end of the second quarter. Some 58.3 percent of Grameenphone's total subscribers, or 4.97 crore, use internet services.

"Through a relentless focus on efficiency and automation, we have been able to offset cost pressure and deliver a solid ebitda margin of 60.4 percent. This was the thirteenth consecutive quarter of growth in both turnover and ebitda," said Otto Risbakk, chief financial officer of Grameenphone.

Ebitda, or earnings before interest, taxes, depreciation, and amortisation, is an alternate measure of profitability to net income.