Robi Axiata Records Impressive 140% Profit Surge in H1
Robi Axiata Limited, the second-largest mobile network operator in the country, has reported an astounding 140% year-on-year increase in its net profit during the first half of 2023.
According to the unaudited financial statement for the January-June period, the company’s net profit soared to Tk66.38 crore, compared to Tk27.67 crore in the same period the previous year.
Robi’s consolidated earnings per share reached Tk0.13, with a net asset value per share of Tk12.24 and net operating cash flow per share of Tk3.41 as of June 2023.
The telecom network operator also witnessed a substantial 18% revenue surge, reaching Tk4,887 crore. The revenue boost was primarily driven by a 20% increase in revenue from mobile services, encompassing voice, non-voice, data, subscription, and connection fees, amounting to Tk4,532 crore.
However, the company experienced a decline in revenue from device sales, which dropped by 74% to Tk3.95 crore, and other revenue streams, such as commission, IT professional services, and digital services, also decreased by 18% to Tk63.70 crore.
Read more: Bangladesh among first 4 countries to receive ChatGPT Android version
Robi Axiata Limited began its operations in 1997 as Telekom Malaysia International (Bangladesh) under the brand name “Aktel.” In 2010, it was rebranded as Robi and later merged with Airtel.
As of May 31, 2023, the company boasted a total of 5.59 crore subscribers, showing growth from 5.44 crore in December 2022.
In 2020, the mobile network operator successfully raised Tk523 crore from the stock market through an initial public offering.
Robi Axiata Limited is primarily owned by Axiata Group Berhad, holding 61.82% of the company, while Bharti Airtel of India owns 28.18%, and the general public holds the remaining 10%.
Despite its remarkable performance, the company’s shares have remained fixed at the floor price of Tk30 each since August of the previous year at the Dhaka Stock Exchange.
In response to the ongoing dollar crisis in the country, Robi Axiata decided to secure a $55 million shareholder loan facility from its parent company, Axiata Group, a Malaysian multinational telecommunications conglomerate. The loan will be in effect for a period of three years and is taken as a precautionary measure to safeguard against potential impacts.
Read more: Marico Bangladesh profit surges 29% in Q2
Robi clarified that no assets were pledged as security, and there were no charges created with the Registrar of Joint Stock Companies and Firms in relation to this loan agreement. The interest rate of the loan will be based on the secured overnight financing rate (SOFR), which currently stands at 1.2%.
