Revenue dips again; Submarine Cables recommends 40% cash dividend

After suffering a 22.69% fall in revenue last year, its first in eight years, state-owned Bangladesh Submarine Cables PLC has once again posted a revenue decline in the 2024-25 fiscal year.

However, the company reported a 12.54% growth in its net profit, and recommended a 40% cash dividend, meaning shareholders will get Tk4 against per share – the same payout as in the previous fiscal year, according to its disclosure published on the stock exchanges today (23 September).

According to its latest report, the state-owned firm posted a revenue of Tk396.09 crore and a profit of Tk205.94 crore in FY25. In contrast, it recorded its highest-ever revenue of Tk515.49 crore and profit of Tk279.02 crore in FY23. 

Despite the revenue fall, the company's net profit margin rose to 52.25% in FY25, up from 45.91% in the previous fiscal year.

Sources said increased competition with International Terrestrial Cable (ITC) operators and reduced International Private Leased Circuit (IPLC) rent have been squeezing its revenues.

According to its annual report for FY24, in 2012, the Bangladesh Telecommunication Regulatory Commission issued ITC licenses to six private operators, of which four are now in active commercial operation.

The ITC licence holders offer IPLC service from neighbouring India through international terrestrial cables connecting the landing stations in India with Bangladesh.

As a result, ITC licence holders are the main competitors of Bangladesh Submarine Cables, and they sometimes offer lower tariffs to attract customers. To remain competitive, the company occasionally needs to revise and lower its IPLC and IP transit service tariffs, which impacts the company's revenue.

Meanwhile, the firm's net operating cash flow per share dropped to Tk13.75 from Tk17.63 last year, owing to lower revenue collection and higher expenses. 

Its net asset value, however, rose to Tk1,701 crore as of 30 June 2025, compared to Tk1,524.59 crore a year earlier.

The company's annual general meeting, which is to be convened digitally, is scheduled for 23 November, with 22 October set as the record date to identify shareholders.

Bangladesh Submarine Cables is the country's sole provider of submarine cable-based bandwidth services and manages the national submarine cable system. It also operates as an International Internet Gateway (IIG) service provider.

At present, the company supplies bandwidth to IIG operators through IPLC, provides IP transit services to IIGs, and offers IPLC connectivity to corporate and other clients. Its network includes the SMW-4 (South East Asia-Middle East-Western Europe) cable, operational in Cox's Bazar since 2005, and the SMW-5 cable in Kuakata, which came online in 2017.

On Tuesday, its share price slightly declined to Tk136.7 each at the Dhaka Stock Exchange.