Robi posts 134pc Q2 profit surge on operational efficiency

Robi Axiata posted a remarkable 134 per cent year-on-year surge in profit to Tk 2.57 billion for the second quarter to June this year amid challenging macroeconomic climate and tough market competition.

Consolidated earnings per share (EPS) jumped to Tk 0.49 in the April-June quarter this year from Tk 0.21 in the same quarter a year ago, according to Robi's un-audited financial statements published on Monday after a board meeting.

Robi registered a 2.0 per cent de-growth in revenue year-on-year to Tk 25.55 billion in the quarter to June this year. This indicates that the mobile network operator is yet to return to its pre-uprising level of performance last year.

Despite the decline in revenue, the company could maintain a healthy growth in profit, largely due to lower impacts of the devaluation of the taka against foreign currencies and a sharp reduction in operating expenses.

"Cost efficiency drive continues to gain momentum with application of new home-grown digital solutions that helped Robi to remain on a profit growth trajectory," said M. Riyaaz Rasheed, acting CEO, and chief financial officer of Robi Axiata in a statement.

Robi cut selling and distribution expenses drastically to Tk 2.89 billion in the June quarter from Tk 4.21 billion in the same quarter last year, while dealer commission was slashed by 34 per cent and advertisement cost by 18 per cent during the quarter to June this year, compared to the same quarter last year.

Moreover, the telecom operator managed to gain Tk 19.63 million in forex transactions in the quarter to June, as opposed to a loss of Tk 475 million in the same quarter last year, for stability in the forex market.

Robi's journey of digital transformation has continued to gather momentum. The telecom operator has been making efforts to improve its services and expand its customer base.

It added 1.0 million new subscribers in the June quarter, taking the total active subscribers to 57.4 million. Of them, 76.8 per cent are data users while 67 per cent 4G users.

The telecom operator maintained the leading position when it comes to 4G subscribers. As part of the company's drive to strengthen its network, Robi's total sites reached 18,366 by the end of June, 99.3 per cent of which are 4G sites.

Robi also reported strong EBITDA (earnings before interest, tax, depreciation, and amortization) of Tk 13.47 billion, with a 52.7 percent profit margin in the second quarter to June. The year-on-year growth in EBITDA was 10.1 per cent in the quarter, indicating the strength of its operating efficiency.

EBITDA is a measure of profitability.

Mr Rasheed cautioned that growing concentration of market power will undermine the opportunities that the telecom reform is expected to unlock. He urged the telecom regulator to address the long-standing problem for equitable growth in the industry.

For the last several years, Robi has been investing heavily on spectrum and has expanded its digital business in a move to deliver long-term value to shareholders and ensure a sustainable growth.

It invested Tk 2.3 billion as capital expenditure during the quarter to June.

Meanwhile, the stock of Robi rose 2.61 per cent to Tk 27.5 per share on Monday on the Dhaka Stock Exchange.

Its half-yearly profit jumped 78 per cent year-on-year to Tk 3.83 billion in the January-June period this year although revenue dropped 4.4 per cent to Tk 48.96 billion during the time.

Annual performance

The second largest telecom operator had posted a record annual profit of Tk 7.03 billion for 2024, making a 119 per cent jump over the year before, riding on operating efficiency.

Its revenue at the time grew only 1 per cent year-on-year to Tk 99.5 billion, lower than expected because of internet shutdown in measures to contain anti-government protests in the latter half of the year and the devastating flash floods afterwards.

Robi paid a 15 per cent cash dividend for 2024, highest since its listing in 2020.

In a major milestone for the country's digital infrastructure, Axentec PLC last month officially launched Axentec Cloud, Bangladesh's first Tier-4 cloud platform fully hosted and operated within the country. The platform is a flagship offering from Axentec, an affiliate of Robi Axiata.

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