Bangladesh Development Reports
Robi Axiata Ltd (Robi) announced its financial results for the first six months ended on 30 June 2015. During first half of the year, Robi added another 2.1 million new subscribers to reach 27.4 million, which represents 21.6% mobile subscriber market share of the country.
Key Highlights
Robi customer base reached 27.4 million with an Year on Year (YoY) growth of13.9%
Quarter on Quarter (QoQ) revenue growth of 6.5% while first half (1H)revenue growth of 4.9%
QoQ EBITDA growth grew by 4.3% driven by prudent cost management
QoQ Profit After Tax (PAT) exhibited growth of 1.3% whereas 1H PAT recorded a de-growth of 14.4% mainly resulting from higherdepreciation
Investments in network expansion up by 36.4% to reach BDT 13.5 billionin first half of 2015
BDT 9.4 billioncontributed to National Exchequer in 2015 which is37.5% of total revenue
During the first half of the year, the company delivered strong revenue growth of 4.9% compared to the same period of last year, with remarkable data revenue growth of 128%. 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 37.0% in first half of 2015, which is marginally lower than same period of previous year due to higher network expenses from continued network investments, and intense price competition. Profit after Tax (PAT) margin of 7.4% islower than the same period of last yeardue to higher depreciation resulting from investments in 2.5G/3.5G network expansion.
QoQPERFORMANCE(Q2 2015 vs Q1 2015)
Robi subscriber base recorded a growth of 4.1%, adding 1.1 million to reach27.4 million, which reflects boosting customer confidence towards Robi as a brand, its services and network experience.
QoQ revenuegrew by 6.5% to BDT 13billiondriven byseveral customer centric product and service offeringswhile stable political condition also supported to growth during the second quarter. Although Data usage growth was at16.7%, data revenue growth remained flat in second quarter due to rapid erosion in data prices triggered by aggressive competition.
QoQ EBITDA grew by4.3% to BDT 4.7billion in Q2 2015reflecting efficient cost management. PAT also grew by1.3% amountingBDT 0.9billion in Q22015.
YoYPERFORMANCE (Q22015 vs Q22014)
On YoY basis, the company recorded strong13.9% growth,adding 3.3 million new subscribers to reach 27.4 million at the end of secondquarter of 2015. Customer centric products and service offeringsand superior network experience enabled Robi to achieve admirablegrowth in its subscriber base.
The company also delivered a moderate 5.6% YoY revenue growth to reach BDT 13.0billion in Q2 2015 from BDT 12.3billion in Q2 2014.
While EBITDA margin registered 36.7% in Q2 2015, EBITDA dropped marginallyto BDT4.7billion from BDT 4.9billion in Q22014. Retraction of EBITDA was impacted primarily by Network operating costs resulting fromexpansion of 2.5G and 3.5G network coverage.
In Q2 15, Robi recorded PAT of BDT 0.9billion, which is 17.4% lower than Q2 2014,negatively impacted by additional depreciation and amortization from new CAPEX investments and 3G spectrum amortization.
INVESTMENT IN MOBILE NETWORK INFRASTRUCTURE
Robi continued to invest heavily to fast-track its 3.5G network expansion and to improve 2.5G customer experience both in voice and data services. The total CAPEX investment made since inception amounted to BDT 155.8billionincluding BDT 7.1billion CAPEX investment in second quarter of 2015. The company has deployed network coverage in all 64 districts in Bangladesh through 8,119 sites,of which over 2,450 are 3.5G sites.
COMMENTARY
Robi Chief Operating Officer, Mahtab Uddin Ahmed said “Robi introduced free internet service through internet.org. It demonstrates our commitment to facilitate affordable internet for the masses.Robi launched “BoishakhiJhor” campaign where customers enjoyed up to 50% mega discounts in famous 3G-enabled smartphones. We have offered “Shera Call Rate on Tk. 39/79 Recharge” to provide best competitive call rate of the country. Robi also offered double bonus on 1GB and 2GB easy load recharge-based internet pack activation. Robi also has launched a SMS based quiz campaign whereby Robi subscribers can meet the pace sensation, Rubel.”
On the sponsorship of Bangladesh National Cricket Team he said, “We think that the Tigers by applying their talent, upholding integrity and through hard work have exemplified what it means to ignite the power within”.
Earlier, Robi Managing Director and CEO, Supun Weerasing here marked that “Robi has attained stable growth across all parameters except core voice services during the first half of the year. 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 is the new sponsor of Bangladesh National Cricket Team and we are very proud to be a partner of Bangladesh Cricket Board in their glorious journey” he added.
PAYMENT TO STAKEHOLDERS
In Q22015, the company contributed more than BDT 4.8billion to the government exchequerrepresenting 37% of company revenue. Since inception in 1997, Robi has paid more than BDT 150billion to the government exchequer while for the same period remitted BDT 2.6billion dividends to its shareholders.
ABOUT ROBI:
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 subscribers, as of June 2015. Robi network provides nationwide coverage to nearly 99% of the population with 12,6792.5G BTS and over 2,450 3.5G sites. Robi proudly claims to have the widest international roaming service in the market, connecting 600 operators across more than 200 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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