The second biggest mobile network provider in Bangladesh Robi Axiata. It announced last year that it had made its highest profit ever and that it has proposed the largest payout since going public in 2020. It reported an impressive 119% increase in profit to Tk703 crore in 2024 with earnings per share (EPS) of Tk1.34, a substantial rise from Tk321 crore in 2023. The business said in a press release that market disruptions, excessive inflation, and economic volatility affected consumer purchasing power. In 2024 Robi recommended a 15% cash dividend for its stockholders up from 10% in 2023. This indicates that the telecom provider will distribute Tk1.5 per share or Tk785 crore in dividends to its owners.
Yet it’s 2024 revenue of Tk9,950 crore represented a slight 0.1% rise over 2023 revenue of Tk9,942 crore. Its voice income increased by 0.7% year over year, while its data revenue jumped by 2.2%, according to a news release. At its board meeting on February 17, the firm approved the 2024 financials and the proposed dividend for its shareholders. It also set the date of its annual general meeting (AGM) for April 21 with a record date of March 16.
Flexibility in the face of economic challenges
Robi said in the news statement that it was still dedicated to providing shareholders and customers with more value by putting operational efficiency and strategic investments first. Even in the face of a difficult economic environment. M Riyaaz Rasheed interim CEO of Robi Axiata commented on the company’s performance. He said that “Our primary focus remains on delivering long term value to our shareholders and ensuring sustainable growth.” He also said that “We are well positioned for the future thanks to our dedication to operational effectiveness and investment in digital infrastructure, even though we are still navigating a turbulent market.
For telecom companies such as Robi to prosper it is imperative that tax and regulatory laws promote a fair and competitive telecom industry. Rasheed praised recent regulatory changes that streamlined the telecom industry and emphasized the importance of implementing them quickly to maximize consumer benefits. The higher SIM tax and the 15% to 20% increase in supplemental duty he said that they are concerning because they may impede Bangladesh’s development in adopting digital technology and making effective use of digital services. “Robi remains committed to providing value to shareholders, investing in infrastructure, and advocating for policies that support sustainable industry growth, even in the face of macroeconomic headwinds,” he added.
Variable quarterly performance
Robi reported mixed results for its quarterly performance. Its voice revenue declined by 8.4% compared to the Third quarter of 2024 while data revenue increased slightly by 0.1%. Year over year basis its voice revenue in the quarter December grew by 1.7%. While data revenue saw a sharp decline of 13.9%. The company attributed this drop to intense market pressure to lower data prices and the knock-on effect of high inflation, which weakened consumer purchasing power, according to the press release.
The number of subscribers drops by two million
Robi’s subscriber base decreased by about 20 lakh. Robi was with 5.67 crore active subscribers in the end of the year. In 2024 regarding the decline Robi stated that the rise in SIM tax from Tk200 to Tk300 is created additional challenges for subscriber acquisition. Further compounded by aggressive market strategies from competitors. At the end of 2023, its total subscriber base stood at 5.83 crore, up from 5.44 crore in 2022, according to data from the Bangladesh Telecommunication Regulatory Commission. By December 2024, its internet subscriber base had declined by 21 lakh to 4.26 crore, despite adding more than 500,000 new 4G users to the network in 2024. 4G users accounted for 63.9% of Robi’s active subscribers. Robi maintained over 18,000 4G sites, ensuring 98.96% population coverage with its 4G network. On Monday (17 February), its shares closed at Tk29.40, a 1.01% decrease from the previous trading session.
Sourc: The Business standard
