Robi Axiata posted an impressive 341% year-on-year growth in profit, reaching Tk 1.07 billion in Q2 2023, driven by higher revenue and efficient cost management.
The second-largest telecom operator in Bangladesh saw revenue growth of over 2.5%, totaling Tk 26.04 billion from April to June. Data revenue surged by 12.7%, highlighting strong data-led growth.
Despite macroeconomic and regulatory challenges, Robi’s cost of revenue generation was cut by 12.76% year-on-year, enhancing bottom-line growth. The cost of revenue, which includes all expenses related to generating revenue, was Tk 14.83 billion, or 57% of total revenue, down from 67% in the same quarter last year.
Robi’s active subscriber base reached 59.5 million, with 45.4 million using the Internet and 37.6 million 4G users by the end of June.
“Despite economic woes and mounting regulatory challenges, we are pleased to see Robi continuing on the growth trajectory,” said Rajeev Sethi, Managing Director and CEO of Robi Axiata. “We have heavily invested in our network to ensure quality experience for our customers’ rapidly growing data consumption.”
Of the total active subscribers, 76.3% were Internet users and 63% used 4G networks.
Mr. Sethi noted that the significant devaluation of the taka due to a new exchange rate system and rising borrowing costs had impacted profit, “despite razor-sharp focus on efficient cost management.” Robi’s foreign exchange loss increased 7.5 times year-on-year to Tk 475 million in Q2.
Robi welcomed regulatory efforts to improve the quality of services (QoS), with Mr. Sethi stating, “Robi is consistently offering better quality than what is expected as per the QoS regulation.”
Robi has invested heavily in spectrum and digital business expansion, emerging as a strong industry player. The company’s half-yearly revenue rose nearly 4% to Tk 51.20 billion from January to June 2023, with profit up 222% year-on-year to Tk 2.14 billion.
Robi invested Tk 6.77 billion in Q2, totaling Tk 10.43 billion in the first half of 2023. The company contributed Tk 16.89 billion to the national exchequer in Q2, equivalent to 64.9% of its revenue, with total payments reaching Tk 32.95 billion in H1 2023.
Stock Performance
Despite robust financial results, Robi’s stock fell 2.5% on the Dhaka Stock Exchange (DSE) to Tk 23.4 per share on Monday, plunging 22% since the removal of the floor price in March 2023.
Annual Performance
In 2023, Robi’s annual profit grew 75% year-on-year to Tk 3.21 billion, driven by 16% revenue growth and a record number of new subscribers. Following the record profit, Robi declared a 10% cash dividend for 2023, the highest since its listing.
Amid the ongoing dollar crisis, Robi secured a $55 million loan from its parent company Axiata Group, a precautionary measure against potential impacts.
However, the recent shutdown and Internet blackout due to the quota reform movement severely affected telecom operators, including Robi, as mobile Internet and data services were unavailable for over 10 days since July 18, which is expected to negatively impact future profits.
