Robi Axiata has announced a record profit of Tk 7.03 billion for the year 2024, driven by improved operational efficiency and strategic investments, despite facing a difficult business environment. The annual profit surged by 119% year-on-year, although revenue saw a modest increase of less than 1%, reaching Tk 99.50 billion. The subdued revenue growth was impacted by the internet blackout during the student-led protests in July-August and flash floods that affected the country.
The second-largest telecom operator in Bangladesh saw only a 0.7% increase in voice revenue and a 2.2% rise in data revenue for the year. M. Riyaaz Rasheed, acting CEO of Robi, attributed the profit growth to reduced operating expenses and the lower impact of currency devaluation, despite the economic instability and high inflation that affected consumer purchasing power.
The company reported strong EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) of Tk 50.82 billion, marking a 4.8% improvement in the EBITDA margin to 51.1%, reflecting its success in managing operating costs.
“Our primary focus remains on delivering long-term value to our shareholders and ensuring sustainable growth. While we continue to navigate a dynamic market, our commitment to operational efficiency and investment in digital infrastructure positions us well for the future,” said Rasheed.
Robi also declared a 15% cash dividend for 2024, the highest since its stock market listing in 2020, amounting to 111.8% of the profit after tax. This will result in approximately Tk 7.86 billion in cash dividends for investors, with the company tapping into its retained earnings for the payout. The dividend yield for 2024 stands at 5.10%, the highest in Robi’s history.
However, Robi faced challenges in acquiring new subscribers due to an increase in SIM taxes from Tk 200 to Tk 300 per SIM and aggressive market strategies from competitors. As a result, the company’s subscriber base decreased by 2 million, bringing the total to 56.7 million, with internet subscribers dropping by 2.1 million to 42.6 million. Despite this, Robi saw an increase of over 0.5 million 4G users, bringing the share of 4G users to 63.9% of its active subscribers.
Rasheed welcomed recent regulatory reforms aimed at streamlining the telecom sector but expressed concern over the increase in supplementary duty and SIM tax, which could hinder the adoption of digital tools and services.
Despite macroeconomic headwinds, Robi remains focused on delivering shareholder value and investing in infrastructure. The company invested Tk 16.38 billion in 2024, including Tk 4.46 billion in the final quarter, to enhance network coverage and expansion. Robi also contributed Tk 62.87 billion to the government’s exchequer, which accounted for 63.2% of its annual revenue.
Despite the record profit, Robi’s stock dropped by 1.01% to Tk 29.40 per share on the Dhaka Stock Exchange on Monday.
