Robi posts 119% profit growth in 2024, proposes record-high dividend

Robi Axiata – Bangladesh's second-largest mobile network operator – reported its highest-ever profit last year and proposed its largest dividend since its listing in 2020.

In 2024, it posted a stellar 119% growth in profit to Tk703 crore, with earnings per share (EPS) at Tk1.34, a significant increase from Tk321 crore in 2023.  

In a press release, the company stated that economic instability, high inflation, and market disruptions impacted consumer purchasing power.  

Despite this, Robi increased its dividend payout for 2024, recommending a 15% cash dividend for its shareholders, compared to the 10% cash dividend paid in 2023.  

This means the telecom operator will pay Tk1.5 per share, totalling Tk785 crore in dividends to its shareholders.  

As a result, the dividend payout will amount to 111.8% of its net profit after tax for 2024.  

In its board meeting held on 17 February, the company approved the 2024 financials and the proposed dividend for its shareholders.  

It scheduled its annual general meeting (AGM) for 21 April, with the record date set for 16 March.  

However, its revenue stood at Tk9,950 crore in 2024, reflecting a modest 0.1% increase from Tk9,942 crore in 2023.  

Year over year, its voice revenue grew by 0.7%, while data revenue increased by 2.2%, according to a press release.

Resilience amid economic challenges

In the press release, Robi stated that despite a challenging economic landscape, it remained committed to delivering enhanced value to shareholders and customers by prioritising operational efficiency and strategic investments.  

Commenting on the company's performance, M Riyaaz Rasheed, acting CEO of Robi Axiata, said, "Our primary focus remains on delivering long-term value to our shareholders and ensuring sustainable growth."

"While we continue to navigate a dynamic market, our commitment to operational efficiency and investment in digital infrastructure positions us well for the future. It is essential that regulatory and taxation policies support a balanced and competitive telecom sector to allow operators like Robi to thrive."  

Rasheed also welcomed recent regulatory reforms aimed at streamlining the telecom sector, emphasising the need for swift implementation to maximise benefits for consumers.  

However, he expressed concern over the increase in supplementary duty from 15% to 20% and the higher SIM tax, noting that these measures could hinder Bangladesh's progress in digital adoption and the efficient use of digital services.  

Despite macroeconomic headwinds, Robi remains committed to delivering value to shareholders, investing in infrastructure, and advocating for policies that support sustainable industry growth, he added.  

Mixed quarterly performance

Robi reported mixed results for its quarterly performance. Its voice revenue declined by 8.4% compared to the third quarter of 2024, while data revenue increased slightly by 0.1%.  

On a year-over-year basis, its voice revenue in the December quarter grew by 1.7%, while data revenue saw a sharp decline of 13.9%.  

The company attributed this drop to intense market pressure to lower data prices and the knock-on effect of high inflation, which weakened consumer purchasing power, according to the press release.  

Subscriber Base Declines by Two Million

Robi's subscriber base decreased by about 20 lakh, ending the year with 5.67 crore active subscribers.  

Regarding the decline, Robi stated that the rise in SIM tax from Tk200 to Tk300 in 2024 created additional challenges for subscriber acquisition, further compounded by aggressive market strategies from competitors.  

At the end of 2023, its total subscriber base stood at 5.83 crore, up from 5.44 crore in 2022, according to data from the Bangladesh Telecommunication Regulatory Commission.  

By December 2024, its internet subscriber base had declined by 21 lakh to 4.26 crore, despite adding more than 500,000 new 4G users to the network in 2024. 4G users accounted for 63.9% of Robi's active subscribers.  

Robi maintained over 18,000 4G sites, ensuring 98.96% population coverage with its 4G network.  

On Monday (17 February), its shares closed at Tk29.40, a 1.01% decrease from the previous trading session.