Robi Axiata Ltd. (Robi) announced its financial results for the fourth quarter and financial year ended 31 December 2014.
In 2014, Robi added another 2.9 million new customers to reach 25.3 million, which represents 21% of customer market.
For the 2014 financial year, the company recorded revenue growth of 9.4% compared to the last year with a remarkable growth in data revenue of over 120% supported by an yearly data usage growth of over 250% propelled by the significant investments in network to drive 3.5G and 2.5G data usage. With this continued revenue growth faster than overall market growth, Robi further strengthened it’s positioning as the second largest operator in terms of revenue market share in Bangladesh.
EBITDA grew by 18.3%, whilst EBITDA margin improved by 300 basis points to reach 38.3% resulting predominantly from revenue growth and bringing efficiency in cost structure. Despite additional operating expenses and depreciation from increased investments in spectrum and CAPEX (Capital Expenditure) to support the rollout of 3.5G network and expand 2.5G network, Profit after Tax (PAT) increased by 20.4%, largely due to strong growth in EBITDA and focused investment strategy.
QoQ PERFORMANCE (Q4 2014 vs Q3 2014)
Robi subscriber base grew from 25.0 million to 25.3 million recording 1.3% growth through aggressive market promotions and customer centric acquisition offerings.
QoQ revenue increased by 9.7% to BDT 13.3 billion mainly due to strong growth in data and postpaid voice revenue.
On QoQ basis EBITDA decreased by 7.0% to BDT 4.5 billion in Q4 2014 due to higher network cost to support 3.5G operations. PAT for the quarter saw de-growth of 29.9% from Q3 2014 to record BDT 0.9 billion in Q4 2014 due to drop in EBITDA and higher depreciation resulting from investments towards network expansion.
YoY PERFORMANCE (2014 vs 2013)
On YoY basis, the company delivered a strong 13.2% growth in subscriber base over 2013 to reach 25.3 million. Customer centric product and service offerings and better data network experience helped Robi to deliver a strong growth in subscriber base.
Robi also delivered a strong revenue growth of 9.4% YoY to reach BDT 49.4 billion in 2014 from BDT 45.2 billion in 2013. Data revenue witnessed an unprecedented growth of 120% during the same period in line with deployment of 3.5G services across the country.
EBITDA registered a double digit growth of 18.3% YoY to reach BDT 18.9 billion in 2014 from BDT 16.0 billion in 2013. EBITDA growth was driven primarily by the incremental data and focused cost management.
In 2014, Robi recorded PAT of BDT 4.4 billion, a robust growth of 20.4% from 2013. Topline growth and operational excellence ensured consistent PAT growth. During the last 12 month period, Robi invested BDT 21.0 billion which includes BDT 3.6 billion on account of 3G Capex.
INVESTMENT IN MOBILE NETWORK INFRASTRUCTURE
Robi continues to invest heavily to fast-track its 3.5G network and also to improve 2.5G customer experience both in voice and data services. The company has deployed over 2,400 3.5G sites providing a best in class data experience in Bangladesh. The total CAPEX investments made in 2014 amounted to BDT 21.0 billion. The company has now deployed 3.5G network coverage in all 64 districts of Bangladesh.
COMMENTARY
Robi Managing Director and CEO, Supun Weerasinghe said “I am pleased to see the growth momentum continued in 2014 across all dimensions of our business. We are seeing good growth in data services since start of the year as we expand our 3.5G network across the country. We are investing significantly towards expanding our 3.5G network and to support growth in data usage. However, current political situation is a concern and it could impact our business growth in 2015.”
Robi Chief Operating Officer, Mahtab Uddin Ahmed, said that Robi continued to offer innovative and customer centric data product at most affordable price across the country, which has made adoption of data services easier and cost effective. On voice services, Robi introduced flat rate talk time offers including attractive recharge campaigns with target bonus offers along with bundle products.
Commenting on the 3.5G network expansion, the COO added that “Robi has already covered all 64 districts of Bangladesh in November 2014 with over 2,400 sites.”
PAYMENT TO STAKEHOLDERS
In 2014, the company has paid out more than BDT 21.7 billion to the government exchequer representing 43.8% of company revenue which is 0.4% of service sector GDP. Since inception in 1997, Robi has paid out more than BDT 142 billion to the government exchequer.
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 over 25 million subscribers, as of December 2014. Robi network provides nationwide coverage to nearly 99% of the population with more than 11,200 BTS and over 2,400 3.5G sites. Robi proudly claims to have the widest international roaming service in the market, connecting over 600 operators across 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.
