Robi Axiata has achieved an impressive 78% year-on-year profit growth, reaching Tk 1.89 billion in the third quarter ending September 2023, largely attributed to efficient cost management. A significant reduction in foreign exchange losses also contributed to this surge in profit.
Despite this growth, the second-largest telecom operator in Bangladesh reported a nearly 3% decline in revenue, totaling Tk 24.74 billion during the same period. This decrease was primarily due to internet shutdowns and severe flash floods affecting certain regions of the country.
While Robi’s voice revenue increased by 3.7% year-on-year, its data revenue experienced a significant decline of 15.5% year-on-year during the July-September quarter.
Rajeev Sethi, Managing Director and CEO of Robi Axiata, noted, “We faced unprecedented challenges during the July-September quarter, marked by internet blackouts during the mass uprising and subsequent flash floods.” He emphasized that cost efficiency strategies enabled Robi to achieve profit growth despite the downturn in revenue.
Robi’s foreign exchange losses decreased by 52% year-on-year to Tk 184 million, and operating expenses fell by 30% to Tk 534 million compared to the same quarter last year. Although Robi lost one million data subscribers during this period, it continues to maintain the highest percentage of data users among active subscribers in the industry.
Additionally, the telecom operator reduced its revenue generation costs by 2.85% year-on-year, contributing to the sustained profit growth despite the challenging macroeconomic environment.
For the nine-month period ending September 2023, Robi’s revenue increased by over 2% year-on-year to Tk 75.95 billion, while profit surged 134% year-on-year to Tk 4.03 billion.
Robi has been heavily investing in spectrum acquisition, network expansion, and digital business initiatives, solidifying its position as a robust player in the telecom industry. In the third quarter alone, Robi invested Tk 1.49 billion, bringing its total investment to Tk 11.92 billion for the year to enhance network coverage and expansion.
The company contributed Tk 13.46 billion to the national exchequer, equivalent to 54% of its total revenue in Q3. On the stock market, Robi’s shares rose by 3.15% to close at Tk 26.2 per share on Wednesday.
In terms of annual performance, Robi’s profit grew by 75% year-on-year to Tk 3.21 billion in 2023, driven by a robust 16% revenue increase and a record number of new subscribers. Based on this record profit, Robi announced a 10% cash dividend for 2023, the highest since its listing in 2020.
