Robi Axiata Sees Growth in Voice and Revenue Despite Market Challenges
Robi Axiata Limited, a leading mobile operator in Bangladesh, reported a 7% growth in voice services and a 2.2% increase in data services in 2024 compared to the previous year. As a result, the company’s total revenue for the year stood at BDT 9,950 crore, marking a marginal 0.1% year-on-year increase. Based on this performance, Robi, a publicly listed company, announced its dividend declaration for the financial year ending December 31, 2024, on Monday (February 17).
The company declared a 15% cash dividend for its shareholders for the year under review. Robi's Annual General Meeting (AGM) is scheduled for April 21.
According to the financial report, while voice revenue in Q4 of 2024 grew by 1.7% compared to the same period in 2023, data revenue declined by 13.9%. Robi attributed this decline to market competition, lower data package prices, and the impact of inflation.
In 2024, Robi contributed BDT 6,287 crore to the government, accounting for 63.2% of its total revenue. In the final quarter alone, the company paid 70% of its revenue to the government. The operator’s net profit after tax for the year stood at BDT 703 crore, a significant increase from the previous year. The company’s Earnings Per Share (EPS) surged by 119% to BDT 1.34. Robi's Board of Directors recommended a 15% cash dividend at BDT 1.50 per share, representing 111.8% of the company's net profit after tax.
Commenting on the financial results, Robi’s Acting Chief Executive Officer M. Riaz Rashid stated, “Our primary objective is to ensure long-term value for shareholders while enhancing service quality for customers. To remain competitive, we are focusing on operational efficiency and investing in digital infrastructure.”
He further noted, “The increase in supplementary duty from 15% to 20% and the rise in SIM tax could hinder digital connectivity expansion.”
Robi’s annual financial report highlighted that the tax on new SIM cards was raised from BDT 200 to BDT 300 in 2024, making customer acquisition more challenging. The company also faced competitive pressures, as rivals adopted aggressive subsidy policies to attract new users. As a result, Robi’s subscriber base declined by 2 million in 2024, settling at 56.7 million. The number of internet users also dropped by 2.1 million to 42.6 million, while the number of 4G users increased by 500,000, reaching 63.9% penetration.
By the end of 2024, Robi had deployed more than 18,000 4G towers nationwide, ensuring 4G coverage for 98.96% of the population.
Despite these challenges, Robi’s Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) increased by 10.5% to BDT 5,081 crore, with the EBITDA margin rising by 4.8 percentage points to 51.1%. However, the EBITDA for the final quarter saw a 3.1% decline, despite registering an overall 0.5% annual growth.
Robi invested BDT 1,638 crore in capital expenditure during 2024, with BDT 446 crore allocated in the fourth quarter alone.
