Bangladesh’s 2nd largest mobile operator Robi sees revenue up 11.5 pct in Q3

DHAKA, Nov. 24 (NsNewsWire) — Bangladesh’s second largest mobile phone company Robi  has reported an 11.5 percent year on year increase in revenues for the 3rd quarter of this year.

The company,  a joint venture between Axiata Group of Malaysia, Bharti Airtel of India and NTT Docomo Inc. of Japan, said in a statement in capital Dhaka on Thursday that the revenue was over 13.9 billion taka for the July- September period.

The following is the full and unedited text of the Robi statement:

“Robi registers11.5% revenue growth in the third quarter;BDT 2.9 billioninvested towards 2.5G/3.5G network expansion

KEY HIGHLIGHTS – Q3 16

• Robi subscribersdecreasedto 23.8 million impacted by deactivation of non-compliantbiometric registration SIM
• QoQ revenue growth (+11.5%)driven by solid growth in data business segment
• QoQEBITDA grew (+12.1%) toBDT 4.5 billion resulting from strong mobile revenue growth and cost management programs
• PAT stands at BDT 17.6 million in Q3 16 impacted by accelerated assets depreciation fromnetwork modernization in Chittagong-Comilla(CC) region
• In Q316, BDT2.9 billion capex investmentto expand2.5G/3.5G network coverage nationwide
• BDT3.5 billion contributed to Government Exchequer in Q316 which is 25.3% of total revenue

Dhaka, 24Nov 2016:Robi Axiata Ltd. (Robi) announced its financial results for the third quarter ended 30September 2016.

YEAR TO DATE (YTD) PERFORMANCE (YTD Q3 16 vs YTD Q3 15)

Year 2016 started with very challenging business condition resulting from lower subscribers’ base arising from SIM biometric registrationcompliance imposed by regulator which sloweddown new activationand deactivation of non-biometric compliant SIM.Growth momentum of mobile services was further impacted negatively by more expensive mobile services due to additional 1% surcharge and 2% supplementaryduty on all mobile services.After biometric re-registration, Robi’s subscriber base stands at 23.8 million, representing 20.5% of industry subscriber market share.

During the period, YTD Q3 16 total revenue contracted by 1.0% compared to the same period of last year, data revenue had registered encouraging growth of 34.1%. Data revenue growth was propelled by significant investment in network coupled with innovative affordable data offerings to drive 3.5G and 2.5G data usage.

Robi achieved operating profit (EBITDA) margin of 32.7% in YTD Q3 16. Margin is 4.0pp (percentage point) lower than the same period of previous year as a result of higher network operating expenses from continued network investment and intense price competition. Due to continuous investment in nationwide network modernization and increased taxation, Robi is behind the expected profitability.

QoQ PERFORMANCE (Q3 2016 vs Q2 2016)

Robi’sactive subscriber base decreased to 23.8 millionin Q3 2016 due to deactivation of non-compliant SIMsafter bio-metric registration cut-off deadline. QoQ revenue grew by11.5% to BDT 13.9 billion amidst intense price competition. Revenue recoverywith customer centric strategy after huge hit for biometric registration campaign which slowed down net addition in Q1 16. QoQ EBITDA grew by 12.1%toBDT 4.5 billion in Q32016driven by strong mobile revenue growth and prudent cost management initiatives implemented across the company. Robi registered BDT 17.6 million PAT in the third quarter impacted byaccelerated depreciationresulting from nationwide network modernizationespecially in Chittagong-Comilla region.

INVESTMENT IN MOBILE NETWORK INFRASTRUCTURE

Robi continued investing aggressively to fast-track its 3.5G network expansion and improving 2.5G network quality for better customer experience both in voice and data services. Total CAPEX investment made since inception amounted to BDT 175.2 billion inclusive of BDT 2.9 billion CAPEX investment in the third quarter of 2016. The company has network coverage in all 64 districts in Bangladesh through 8,700+ sites, of which over 5,200 are 3.5G sites.
COMMENTARY

Robi Managing Director and CEO, Mahtab Uddin Ahmed said, “We experienced solid mobile revenuegrowth during the third quarterof 2016. However, SIM deactivation after 31st May 2016 for non-compliant biometric registration SIM has 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 mobile services experience to our subscribers.

During the third quarter of 2016 we continued to bring most innovative and affordableproductoffers in the market.We introduced a simple and need-based complete mobile solution named ‘ACE’ where users can enjoy bundle pack of talk-time, data and SMS along with free whatsapp, facebook and Robi-Yonder music at reasonable price. Robi also launched its Cloud service for cloud computing and hosting solutions. As a part of corporate responsibility, Robi extended its support towards ‘10 Minutes School’, an online platform that offers comprehensive education content free of cost.

PAYMENT TO STAKEHOLDERS

In Q32016, the company contributed BDT 3.5 billion to the Government Exchequer representing 25.3% of company revenue. Since inception in 1997, Robi has paid more than BDT 170.3 billion to the Government Exchequer while for the same period remitted BDT 2.9 billion dividends to its shareholders.

ABOUT ROBI AS THE MERGED COMPANY

Robi Axiata Limited is a joint venture between Axiata Group of Malaysia, Bharti Airtel, of India and NTT Docomo Inc., of Japan. Axiata holds 68.7% controlling stake in the entity, Bharti holds 25% while the remaining 6.3% is held by NTT Docomo of Japan. It is the second largest mobile phone operator of Bangladesh with approximately 32.2 million active subscribers. The company provides widest network coverage to 99% of the population with over 13,900 on-air sites of which over 8,000 are 3.5G sites. Robi is 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. Robi, as a socially responsible brand, has taken up a number of flagship Corporate Responsibility initiatives in the areas of ICT-Education, Health and Environment with a view to contribute towards the sustainable development of the country.”