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Bangladesh Submarine Cables posted a 1.5 per cent year-on-year profit growth to Tk 1.86 billion for FY25, driven mainly by higher revenue in the final quarter.
The annual result exceeded expectations, as the company had earlier reported a 17 per cent drop in profit during the first nine months through March of FY25.
Earnings rebounded in the last quarter as revenue rose compared to the same period a year earlier. The company also generated higher income from other sources - rent, dividends, and fixed deposit receipts (FDRs) - while cutting provisions for bad debts and taxes.
Shukanta Kumar Debnath, chief financial officer (CFO) of the country's sole state-owned international bandwidth provider and operator of submarine cable landing stations, said revenue growth in the final quarter of FY25 outpaced that of the same quarter in FY24.
Provisions for bad and doubtful debts could be reduced due to stronger recoveries this year, he noted.
The company also benefited from a lower tax rate, as it fell into a government-approved reduced bracket in FY25.
Despite the profit growth, the company's share price on the Dhaka Stock Exchange (DSE) slipped 0.65 per cent to Tk 136.70 per share on Tuesday.
Bangladesh Submarine Cables sits on the country's international internet backbone and provides bandwidth, IP transit, IPLC, and colocation services to telcos, ISPs, and corporates. This critical role ensures recurring cash flows but also exposes the firm to risks such as cable cuts, consortium outages, and regulatory challenges.
The company also reported a year-on-year decline in both net asset value (NAV) and operating cash flow in FY25. The reasons behind the fall could not be confirmed as the full financial statements are yet to be published.
Meanwhile, the board of directors has recommended a 40 per cent cash dividend for FY25, equivalent to Tk 4 per share. The annual general meeting (AGM) will be held virtually on November 23, with the record date fixed for October 22.
The NAV per share stood at Tk 90.99 as of June 2025, down from Tk 93.06 a year earlier. Net operating cash flow also fell to Tk 13.75 per share, compared to Tk 17.63 in FY24.
The company saw steady profit growth from FY20 to FY23, rising from Tk 0.96 billion to Tk 2.79 billion. However, profit slumped 34.42 per cent year-on-year to Tk 1.83 billion in FY24.
The downturn was attributed to fierce competition from International Terrestrial Cable (ITC) operators, which reduced revenue from International Private Lease Circuit (IPLC) rents and IP transit services.
Higher operation and maintenance costs, along with an increase in the number of shares issued to the government for projects, also weighed on earnings per share.
Operating cash flow per share suffered a sharp decline as well, driven by weaker revenue collection and rising expenses.
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