Robi’s 4G leadership yields 86.5 crore taka profit in Q3’21

QoQ PAT grew by 85.4%; the company boasts the highest percentage (74%) of data users in the industry 

KEY HIGHLIGHTS – Q3’21 (July-Sept)

  • 5 Crore 30 lakhs active subscribers with 29.5% subscriber market share
  • 3 Crore 92 lakhs internet subscribers, which is 74% of the total subscriber base- the highest in the industry
  • Revenue: 2,085 crore taka, which is 2.7% higher than the last quarter
  • EBITDA: 861.2 crore taka with 41.3% margin
  • Capex investment: 650.7 crore taka
  • Profit After Tax (PAT): 86.5 crore taka, which is 85.4% higher than the last quarter
  • Contribution to the Government Exchequer: 1,119 crore taka, which is 53.7% of Robi’s total revenue for the quarter

Dhaka, 31 October 2021: Robi ended the third quarter of the year with profit after tax (PAT) of 86.5 crore taka. Had it not been for the 2% minimum turnover tax, Robi’s PAT in Q3’21 would have been 128.2 crore taka.

The company’s PAT grew by 85.4% compared to the last quarter. Compared to the same quarter last year, Robi’s PAT grew by 122.3% in Q3’21. In comparison to the first nine months of last year, Robi’s PAT for the first nine months of this year grew by 44.3%.

Supported by steadily rising revenue, and efficient cost management, the company’s PAT for the first nine months of the year reached 167.4 crore taka. Robi’s financial results for Q3’21 was released today at a virtual press briefing event.

Compared to Q2’21, Robi’s 4G subscriber base grew by 12.7% in Q3’21; compared to the same quarter last year, its 4G subscriber base grew by 51.1%. Out of a total subscriber base of 5 crore 30 lakhs, 2 crore 24 lakhs are 4G subscribers. Besides, 74% of the company’s subscribers are now data users, which is the highest in the industry.

Although the subscriber base grew by 5.8% compared to the same quarter last year, compared to the last quarter, Robi’s subscriber base grew by 2.3% in Q3’21. Robi’s subscriber market share stood at 29.5% at the end of Q3’21.

Robi’s revenue reached 2,085 crore taka in Q3’21 following a rise of 2.7% compared to the last quarter. Compared to the same quarter last year, Robi’s revenue rose by 7.8%. In the first nine months (Jan to Sept) of this year, Robi’s revenue reached 6,097 crore taka. Robi’s EBITDA in Q3’21 stood at 861.2 crore taka, following a rise of 0.8% compared to the last quarter, compared to the same quarter last year, EBITDA grew by 9.3%. EBITDA margin at the end of Q3’21 stood at 41.3%.

The company’s earnings per share (EPS) in Q3’21 was 0.17 taka; in Q2’21 the EPS was 0.09 taka, and in Q3’20 it was 0.08 taka. However, for the first nine months of this year (Jan- Sept, 2021), the EPS was 0.32 taka.

Including capex investment of 650.7 crore taka in Q3’21, the total capex investment in the first nine months (Jan-Sept) of the year reached 1,386 crore taka. Robi paid 1,119 crore taka to the Government exchequer in Q3’21, which was 53.7% of its revenue for the quarter.

The total amount paid to the Government exchequer during the first nine months (Jan- Sept) of this year reached 3,373 crore taka, which is 55.3% of the company’s total revenue for this period. The company had 14,466 sites at the end of Q3’21.

Commenting on the financial performance of the company, Robi’s Acting CEO and CFO, M. Riyaaz Rashid said: “We are very happy to see our profit rising steadily every quarter this year. However, it is very disappointing to note that our PAT in the first nine months could have been 289.3 crore taka, instead of 167.4 crore taka, had we not been subjected to a further 2% minimum turnover tax. Our shareholders are certainly being deprived of the value they deserve for their investment in the company due to this reason.”

On the digital front, Riyaaz was very upbeat about having the highest percentage of data users (74%) in the industry. He also cited that 42% of Robi’s smartphone and data users are actively using the company’s self-care app for availing their desired services. Besides, customer interactions at digital customer touchpoints have increased by 43% compared to last year. This clearly shows that the company is pacing along nicely towards its digital vision, he added.

Referring to the lack of effective SMP regulation, he said: “If immediate actions are not taken to ensure effective implementation of SMP regulation, the SMP regulation will soon be rendered hopeless due to the fast-evolving nature of the industry. In this backdrop, one wonders how long four players can sustain in this market.”