Trade
6 years ago

Robi incurs Tk 2.8b loss in 2017

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Despite encouraging growth in terms of both subscriber and revenue, mobile operator Robi was unable to register any profit in 2017. Alongside continued investment for network development, a number of market and regulatory factors forced the company to incur a heavy net loss of Tk 2.8 billion in 2017. 

The intensification of market competition around pricing for both data and voice, made the financial results particularly bleak for the company in 2017. The existing unfair pricing structure created room for predatory pricing and cross-subsidy. Such anti-competitive market practices are helping to deepen the existing crisis with regards to the prevailing unhealthy market competition. 

On top of this, the exorbitantly high taxation regime is putting further strain on the financial results of the smaller players. As the country gets ready for 4G era, the dire financial reading of Robi indicates the diminishing power of the mobile operators to finance the ensuing digital revolution in the country, the company said in a press statement. 

During the year, the company delivered a strong 26.8 per cent growth in subscriber base over 2016 to reach 42.9 million, adding 9.1 million new subscribers which represents 29.6 per cent subscriber market share. 

Robi achieved a strong revenue growth of 29.7 per cent year-on-year to reach Tk 68.3 billion in 2017 driven by the successful merger with Airtel. Year-on-year data revenue also witnessed a strong growth of 89.1 per cent. Data revenue growth was propelled by nationwide smooth network integration after merger coupled with innovative data offerings to drive data usage. 

In 2017, EBITDA margin (Operating Profit) stands at 19.0 per cent impacted primarily by higher network operating costs and intense price competition. Robi incurred Tk 2.8 billion net loss after tax in 2017 due to continuous capital investment in nationwide network modernisation, significant OPEX, high regulatory cost and sector specific taxation, added the statement.

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