Robi witnesses Tk 34.2m loss in Q2

Robi Axiata Ltd (Robi), the second largest mobile phone operator in Bangladesh, witnessed a net loss of Tk 34.2 million in the second quarter of 2016 due to accelerated depreciation resulting from network modernisation in Chittagong-Comilla region.

However, the mobile phone company registered a revenue growth of 5.1 per cent to Tk12.4 billion in the second quarter (April-June) of this year as compared to the first quarter, said a press release issued in Dhaka yesterday.
The operator reported its earnings before interest, tax, depreciation and amortisation (EBITDA) remained stable at Tk 4 billion in the quarter despite additional costs incurred to support biometric registration.
The active subscriber base remained flat at 27.4 million (20.9 per cent market share) during the period due to the slower addition of subscribers during the biometric re-registration period. 
“SIM biometric re-registration initiative negatively impacted the growth momentum of the business,” said Supun Weerasinghe, managing director and CEO of Robi.
He, however, said the operator was continuing to invest towards expansion and modernisation of 2.5G/3.5G network across the country to provide a superior experience to the subscribers.
The operator said the year 2016 started with a very challenging business conditions resulting from SIM biometric re-registration that had slowed down new activations.
During the January to June (H1) period of this year, Robi’s total revenue contracted by 3.4 per cent compared to the same period of last year.
 Data revenue had registered encouraging growth of 25 per cent, the statement added.
Data revenue growth was propelled by significant investments in network coupled with innovative data offerings to drive 3.5G and 2.5G data usage.
Despite achieving EBITDA margin of 32.9 per cent in H1, the margin was 4.1 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 modernisation and higher tax expense correspondingly with the recent Finance Act 2016.
Total CAPEX investment made since inception amounted to Tk172.3 billion, including Tk 5.6 billion in Q2 of 2016.
In Q2, the operator contributed Tk 3.1 billion to the national exchequer, which would be 24.6 per cent of the company revenue.
Since inception in 1997, Robi has paid more than Tk166.8 billion to the government exchequer while remitting Tk 2.9 billion in dividends to its shareholders.

Robi witnesses Tk 34.2m loss in Q2

Robi Axiata Ltd (Robi), the second largest mobile phone operator in Bangladesh, witnessed a net loss of Tk 34.2 million in the second quarter of 2016 due to accelerated depreciation resulting from network modernisation in Chittagong-Comilla region. However, the mobile phone company registered a revenue growth of 5.1 per cent to Tk12.4 billion in the second quarter (April-June) of this year as compared to the first quarter, said a press release issued in Dhaka yesterday. The operator reported its earnings before interest, tax, depreciation and amortisation (EBITDA) remained stable at Tk 4 billion in the quarter despite additional costs incurred to support biometric registration. The active subscriber base remained flat at 27.4 million (20.9 per cent market share) during the period due to the slower addition of subscribers during the biometric re-registration period. SIM biometric re-registration initiative negatively impacted the growth momentum of the business, said Supun Weerasinghe, managing director and CEO of Robi. He, however, said the operator was continuing to invest towards expansion and modernisation of 2.5G/3.5G network across the country to provide a superior experience to the subscribers. The operator said the year 2016 started with a very challenging business conditions resulting from SIM biometric re-registration that had slowed down new activations. During the January to June (H1) period of this year, Robis total revenue contracted by 3.4 per cent compared to the same period of last year. Data revenue had registered encouraging growth of 25 per cent, the statement added. Data revenue growth was propelled by significant investments in network coupled with innovative data offerings to drive 3.5G and 2.5G data usage. Despite achieving EBITDA margin of 32.9 per cent in H1, the margin was 4.1 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 modernisation and higher tax expense correspondingly with the recent Finance Act 2016. Total CAPEX investment made since inception amounted to Tk172.3 billion, including Tk 5.6 billion in Q2 of 2016. In Q2, the operator contributed Tk 3.1 billion to the national exchequer, which would be 24.6 per cent of the company revenue. Since inception in 1997, Robi has paid more than Tk166.8 billion to the government exchequer while remitting Tk 2.9 billion in dividends to its shareholders.