Robi Axiata Records Stellar Growth with 154% Profit Increase in Q1 FY24

Robi Axiata, Bangladesh’s second-largest telecom operator, has reported a remarkable 154% year-on-year profit increase to Tk 1.06 billion for the first quarter of FY24. This growth was bolstered by a robust 7% increase in revenue, reaching Tk 25.16 billion, and a significant surge in data revenue by 25.7%. The substantial growth in profits is also attributed to a considerable reduction in foreign currency transaction losses, thanks to lesser currency devaluation impacts against the dollar and euro compared to the previous year.

Rajeev Sethi, the CEO of Robi Axiata, highlighted the trust subscribers place in Robi’s strong network as a key factor in this performance. The company has continued its digital transformation journey, focusing on enhancing service quality and expanding its 4G network, with 577 new sites added in the quarter. This has led to over 81% of its data customers using 4G services—the highest in the industry.

Additionally, more than 75% of Robi’s subscribers are now data users, largely due to what the company claims as the best video streaming services in the telecom sector. Sethi also called for regulatory reforms to accelerate the contribution of mobile operators toward achieving the goal of a smart Bangladesh.

Robi has been proactive in boosting network capabilities and improving service quality, which has led to increased data speeds and reduced call drop rates. With a strong focus on digital expansion, Robi invested Tk 3.66 billion in capital expenditures during the quarter and contributed Tk 16.05 billion to the national exchequer.

Despite these positive developments, Robi’s stock performance has seen a downturn, falling 1.49% to Tk 26.4 per share on the Dhaka Stock Exchange, largely due to the removal of the floor price restriction in March this year.

In 2023, Robi’s annual profit grew by 75%, driven by a 16% revenue increase from a record number of new subscribers, leading the company to declare a 10% cash dividend for 2023—the highest since its listing. Amid ongoing economic challenges, Robi also secured a $55 million loan from its parent company, Axiata Group, to safeguard against potential financial impacts.

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