Robi records 5.1pc revenue growth in 2nd quarter

Robi Axiata Ltd. (Robi) announced its financial results for the second quarter ended 30 June 2016. Year 2016 started with a very challenging business conditions resulting from SIM biometric re-registration which slow down new activations, additional 1% surcharge and 2% supplementary duty on all mobile services and shifting of customer preference from voice to data impacted the growth momentum of the business. Despite these challenging conditions, Robi was able to maintain its subscriber base of 27.4 million, representing 20.9% of industry subscriber market share.

During the period, while 1H 2016 total revenue contracted by 3.4% compared to the same period of last year, data revenue had registered encouraging growth of 25.0%. Data revenue ROBI-logogrowth was propelled by significant investments in network coupled with innovative data offerings to drive 3.5G and 2.5G data usage.

Despite Robi achieved operating profit (EBITDA) margin of 32.9% in 1H 2016, margin is 4.1pp (percentage point) lower than the same period of previous year as a result of higher network operating expenses from continued network investments and intense price competition. PAT (Profit after Tax) was impacted by higher depreciation resulting from network modernization and higher tax expense correspondingly with the recent Finance Act 2016. The normalized PAT excluding one-off accelerated depreciation of network modernization amounted to BDT 1.7 billion, 8.0% lower than same period.

Robi active subscriber base remains flat in Q2 2016 standing at 27.4 million due to slower net subscribers addition during biometric re-registration period. QoQ revenue grew by 5.1% to BDT 12.4 billion amidst intense price competition. QoQ EBITDA remains stable at BDT 4.0 billion in Q2 2016 despite additional costs incurred to support biometric registration. Robi witnessed BDT 34.2 million net loss in second quarter due to accelerated depreciation resulting from of network modernization in Chittagong-Comilla region. Normalized Q2 2016 PAT stands at BDT 985 million.

Robi continued investing aggressively to fast-track its 3.5G network expansion and improving 2.5G customer experience both in voice and data services. Total CAPEX investment made since inception amounted to BDT 172.3 billion inclusive of BDT 5.6 billion CAPEX investment in second quarter of 2016. The company has network coverage in all 64 districts in Bangladesh through 8,700+ sites, of which over 4,600 are 3.5G sites.

Robi Managing Director and CEO, Supun Weerasinghe said, “We experienced stable mobile revenue during the second quarter of 2016. However, SIM biometric re-registration initiative negatively impacted the growth momentum of the business. Nevertheless, we are continuing to invest towards expansion and modernization of 2.5G/3.5G network across the country to provide a superior experience to our subscribers.

During the first half of 2016 we continued to bring most innovative and affordable product offers in the market. Robi introduced Yonder music service aiming to provide a total music experience that combines exclusive content from famous local artists along with a comprehensive collection of international music.”

 

In Q2 2016, the company contributed BDT 3.1 billion to the Government Exchequer representing 24.6% of company revenue. Since inception in 1997, Robi has paid more than BDT 166.8 billion to the Government Exchequer while for the same period remitted BDT 2.9 billion dividends to its shareholders.

 

Robi Axiata Limited is a joint venture between Axiata Group Berhad, of Malaysia and NTT DoCoMo Inc., of Japan. Robi is the second largest mobile phone operator in Bangladesh in terms of revenue, with 27.4 million active subscribers. Robi network provides nationwide coverage to 99% of the population with 13,496 BTS and over 4,600 3.5G sites. Robi proudly claims to have the widest international roaming service in the market, connecting 385 operators across more than 140 countries. It is also the first operator to introduce GPRS and 3.5G services in Bangladesh. The Company has introduced many first of its kind digital services in the country and has invested heavily in taking mobile financial services to the underserved communities in the rural and semi-urban areas.

 


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