Robi Axiata secured a remarkable 78 per cent year-on-year growth in profit to Tk 1.89 billion in the third quarter through September this year through efficient cost management.
Lower forex loss was another major reason for the boost to the profit.
The second largest telecom operator's revenue, however, dropped almost 3 per cent to Tk 24.74 billion in the three months through September, compared to the same quarter last year, owing to internet shutdown and devastating flash floods in some parts of the country during the quarter.
Robi's voice revenue rose 3.7 per cent year-on-year, while data revenue saw a significant decline by 15.5 per cent year-on-year in July-September.
Despite the lower revenue, Robi achieved the profit growth largely due to a lower impact from currency devaluation and reduced operating expenses.
"We have passed unprecedented time during the July-September quarter amid internet blackout during the mass uprising period followed by the onslaught of flash flood," said Rajeev Sethi, managing director and CEO of Robi Axiata, in a statement.
Cost efficiency drives helped Robi make a higher profit, the CEO added.
Robi's foreign exchange loss was reduced by 52 per cent year-on-year to Tk 184 million, while operating expenses fell 30 per cent to Tk 534 million in the quarter compared to the corresponding period last year.
Despite losing one million data subscribers during the quarter, Robi continued to have the highest proportion of its active subscriber base as data users in the industry, Robi claimed.
Meanwhile, the telecom operator's cost of revenue generation was cut by 2.85 per cent year-on-year, leading to a bottom-line growth momentum despite macroeconomic woes.
Robi's nine months' revenue rose more than 2 per cent year-on-year to Tk 75.95 billion in January-September this year while profit escalated 134 per cent year-on-year to 4.03 billion during the period.
For the last several years, Robi has been investing heavily on spectrum, network expansion and expanding digital business, emerging as a strong player in the industry.
Robi invested Tk 1.49 billion in the third quarter, taking the total investment to Tk 11.92 billion in January-September this year, for better network coverage and expansion.
Robi contributed Tk 13.46 billion to the national exchequer, equivalent to 54 per cent of its total revenue in Q3.
Meanwhile, its stock rose 3.15 per cent to close at Tk 26.2 per share on Wednesday.
Annual performance
Robi's annual profit grew at a rate of 75 per cent year-on-year to Tk 3.21 billion in 2023, driven by a robust 16 per cent revenue growth with the inclusion of a record number of new subscribers.
Based on the record profit, Robi paid a 10 per cent cash dividend for 2023, highest since its listing in 2020.
Source: https://thefinancialexpress.com.bd/stock/bangladesh/robi-on-growth-trajectory-in-q3-as-it-cut-cost