Bangladesh’s Robi revenue up 6.7 % in 3Qs

DHAKA, Nov. 30 (NsNewsWire) — Robi Axiata Limited, a joint venture between Axiata Group Berhad of Malaysia and NTT DoCoMo Inc. of Japan, has announced its financial results for the third quarter ended Sept. 30,  2015.

During the first nine months of 2015, according to a statement of the operator received here on Monday, it added 3.1 million new subscribers to reach 28.4 million, which represents 21.6% subscriber market share.

During the first nine months of the year, it said the company recorded strong revenue growth of 6.7% compared to the same period of last year, with a remarkable growth in data revenues by over 100%. Data revenue growth was propelled by continuous investment in 3.5G network expansion coupled with innovative data offerings to drive data usage.

Robi achieved Operating Profit (EBITDA) margin of 36.7% in first nine months of 2015 impacted by higher network expenses from continued network investments and intense price competition. Profit after Tax (PAT) margin of 7.8% is lower than that of the same period of last year due to higher depreciation resulting from investments in 2.5G/3.5G network expansion.

QoQ PERFORMANCE (Q3 2015 vs Q2 2015)

Robi subscriber base recorded a growth of 3.7%, adding 1.0 million subscribers to reach 28.4 million through aggressive market promotions and exclusive customer focused acquisition offer with three different recharge options: BDT 9, 29 and 79.

QoQ revenue grew by 3.5% to BDT 13.4 billion underpinned by simplified and innovative offers such as one paisa-per-second call rate on BDT 39 and 79 recharge, double bonus offer etc., while Eid-ul-Fitr and Eid-ul-Adha celebrations also supported towards the growth during the third quarter. With 64.6% data usage growth, data revenue recorded a growth of 14.9% in third quarter.

QoQ EBITDA grew by 1.7% to BDT 4.8 billion in Q3 2015 while PAT for the quarter saw a strong growth of 20.4% from Q2 2015 to record BDT 1.1 billion in Q3 2015.

YoY PERFORMANCE (Q3 2015 vs Q3 2014)

On YoY basis, the Company delivered a strong 13.6% growth in subscriber base over Q3 2014 to reach 28.4 million adding 3.4 million new subscribers. Customer centric products and service offerings coupled with delivery of superior network experience enabled Robi to achieve a strong growth in subscriber base.

Robi delivered a strong revenue growth of 10.4% YoY to reach BDT 13.4 billion in Q3 2015 from BDT 12.1 billion in Q3 2014. Due to intense price competition in the market and increasing substitution of Voice services by over-the-top (OTT) services, the telecommunication industry including Robi experienced a drop in voice revenue. In contrast, data revenue witnessed an unprecedented growth of 71.9% during the same period in line with increased popularity of Robi’s superior 3.5G services across the country.

EBITDA margin registered 36.0% in Q3 2015 impacted primarily by higher network operating costs resulting from continued investments in the expansion of 2.5G and 3.5G network coverage. Consequently, In Q3 2015, Robi recorded PAT of BDT 1.1 billion which is marginally lower than Q3 2014.

INVESTMENT IN MOBILE NETWORK INFRASTRUCTURE

Robi continued investing aggressively to fast-track its 3.5G network expansion and improve 2.5G customer experience both in voice and data services. The total CAPEX investment made since inception amounted to BDT 160.1 billion including BDT 4.3 billion CAPEX investment in third quarter of 2015. The company has deployed network coverage in all 64 districts in Bangladesh through 8,555 sites, of which over 2,950 are 3.5G sites.

COMMENTARY

Robi Managing Director and CEO, Supun Weerasinghe said “We are witnessing impressive growth in data services since start of the year as we expand our 3.5G network across the country. We are investing significantly towards expansion of our network to provide best in class 2.5G and 3.5G mobile experience to our valued customers.”

Robi Chief Operating Officer, Mahtab Uddin Ahmed said, “Robi is committed towards innovating products to meet customers’ varied needs. After internet.org, Robi has introduced Share myNet – a unique internet sharing pack introduced for the first time in Bangladesh that lets user share internet with friends & family. Robi has also added features to its Dhonnobad program to reward its loyal customer base.”

PAYMENT TO STAKEHOLDERS

In Q3 2015, the company contributed more than BDT 3.2 billion to the government exchequer representing 24% of company revenue. Since inception in 1997, Robi has paid more than BDT 153 billion to the government exchequer while for the same period remitted BDT 2.9 billion dividends to its shareholders.