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Robi Axiata earned a record profit of Tk 7.03 billion last year riding on what it claimed was operating efficiency and strategic investments in a challenging business climate.
Its annual profit soared 119 per cent year-on-year but revenue grew less than 1 per cent to Tk 99.50 billion in 2024, compared to the previous year. The top-line growth is slim because of internet blackout during the student-led mass uprising in July-August last year and flash floods across the country later on.
The second largest telecom operator's voice revenue was up only 0.7 per cent year-on-year in 2024, while data revenue rose 2.2 per cent year-over-year in the year.
"The year was marked by economic instability, high inflation, and market disruptions, which impacted consumer purchasing power," said M. Riyaaz Rasheed, acting CEO of Robi Axiata, in a statement issued on Monday.
Though revenue remained almost static, Robi secured an exponential jump in profit as it experienced lower impact of currency devaluation and reduced operating expenses.
"Cost efficiency efforts helped Robi to make record profit," said Mr Rasheed, without elaborating.
Robi reported strong EBITDA (Earnings before interest, tax, depreciation, and amortization) -- Tk 50.82 billion in 2024, with a margin of 51.1 percent, increased by 4.8 percentage points year-on-year in 2024, which indicates its strength in operating cost management.
EBITDA is a measure of profitability.
"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 Mr Rasheed.
Buoyed by the profit growth, the board of directors declared a 15 per cent cash dividend for 2024, the highest since its listing in the stock market in 2020.
The dividends to be given to shareholders are equivalent to 111.8 per cent of the profit after tax in 2024, said the telecom operator in the statement.
Investors will get about Tk 7.86 billion in cash dividends for the year from the company's annual income of Tk 7.03 billion. That means the company will provide an additional Tk 830 million from its retained earnings or reserve.
Due to the record dividend declaration, Robi's dividend yield will be 5.10 per cent for 2024, highest in its history.
Meanwhile, the rise in SIM taxes from Tk 200 to Tk 300 per SIM in 2024 made new subscriber acquisition challenging, further compounded by aggressive market strategies of competito rs, said Robi.
As a result, Robi's subscriber base fell by about 2 million to 56.7 million subscribers, exerting a pressure to reduce data price as high inflation dented consumers' purchasing power.
Internet subscribers declined by 2.1 million to 42.6 million, although more than 0.50 million 4G users were added to the network in 2024. Robi's 4G internet users constituted 63.9 percent of active subscribers.
Welcoming the recent regulatory reforms aimed at streamlining the telecom sector, Mr Rasheed emphasized the need for swift implementation to maximize benefits to consumers.
He, however, expressed concern over the increase in supplementary duty from 15 per cent to 20 per cent and higher SIM tax, saying these measures could hinder progress in adoption of digital tools and the qualitative use of digital services.
Despite macroeconomic headwinds, Robi said it remained committed to its vision of delivering value to shareholders, investing in infrastructure, and advocating for policies that support sustainable industry growth.
For the last several years, Robi has been investing heavily on spectrum, network expansion and expanding digital business, emerging as a strong player in the industry.
Robi invested Tk 16.38 billion in 2024, including Tk 4.46 billion in the final quarter of the year, for better network coverage and expansion.
It also contributed Tk 62.87 billion to the government exchequer, which was 63.2 percent of its annual revenue of 2024.
Despite the record profit, the stock of Robi fell 1.01 per cent to Tk 29.40 per share on Monday on the Dhaka Stock Exchange.