Despite positive profitability indicators through cost control measures, Bangladesh-based mobile operator Robi Axiata reported a 5% drop in revenue in Q3 of 2023 (July-September), with earnings totaling BDT 2,474.4 crore for the quarter.
The decline was attributed to a significant 15-day internet shutdown during a period of civil unrest in July, followed by devastating floods that impacted data revenue. According to financial results released on October 30, Robi’s quarterly earnings were down 2.7% compared to the same period last year, yet the total earnings for the first nine months reached BDT 7,594.6 crore, marking a 2.2% increase year-over-year. Notably, revenue from voice services increased by 3.7% over the previous quarter, while internet service revenue declined by 15.5%. Compared to last year, voice revenue grew by 3.9%, though internet revenue fell by 10.3%.
The economic challenges led to a reduction in Robi’s active subscribers, now at 57.9 million, with internet users numbering 44.3 million, of which 30.7 million are 4G users. Despite a loss of one million internet users, Robi retains the largest number of active internet users within Bangladesh’s mobile telecommunications sector.
Robi’s post-tax profit for Q3 was BDT 188.7 crore, bringing total earnings for the first nine months (January-September) to BDT 402.8 crore, a 134% rise from the same period last year. Earnings per share (EPS) for Q3 stood at BDT 0.36, a 75.5% increase from the prior quarter.
The quarter’s Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) amounted to BDT 1,340.1 crore, representing a margin of 54.2%. For the first nine months, EBITDA stood at BDT 3,783.4 crore, a 49.8% margin. The company also invested BDT 149.2 crore in capital expenditure during Q3, bringing total capital investment for the year to BDT 1,192.3 crore.
Robi contributed BDT 1,346.1 crore to the national exchequer in Q3, representing 54% of its total revenue. Over the first nine months, total contributions reached BDT 4,640.8 crore, equating to 61% of revenue for the period.
Rajeev Sethi, Managing Director and CEO of Robi, noted that the third quarter faced uncertainty due to the internet shutdown and subsequent floods, which significantly impacted revenue as customers left the network. Nevertheless, effective cost management allowed Robi to end the quarter with a profit. He praised recent reforms by the telecom regulatory body aimed at restructuring the telecom ecosystem and reaffirmed Robi’s commitment to supporting the creation of a mutually beneficial framework.
Commenting on the country’s tax regime, Sethi stated that Robi has allocated 61% of its revenue to government taxes from January to September, adding that this tax burden hinders the company’s financial capacity to invest in building the best network in the country.
