Bangladesh Submarine Cable profit jumps 18% in January-March

Boosted by interest income and lower provisions for bad debt, state-owned Bangladesh Submarine Cables PLC, a listed entity on the stock market, reported an 18% rise in net profit for the third quarter of this fiscal year.

According to its financial statement filed with the Dhaka Stock Exchange (DSE), Bangladesh Submarine Cables PLC posted a 2.28% revenue growth to Tk99 crore in the January–March quarter of FY25, while net profit rose to Tk47.82 crore.

Following the announcement, the company's share price gained 1.72% to Tk124.20 today (22 April_.

However, in the first nine months of FY25, revenue declined by 13% to Tk294 crore, and net profit fell by 17% to Tk140 crore compared to the same period a year earlier.

In its statement, the company said revenue and profit declined during the July–March period, mainly due to lower IPLC rent and IP transit service revenues, along with an unexpected cable cut on the SMW5 route (Indonesian seashore end route to Singapore).

An official from Bangladesh Submarine Cables, requesting anonymity, told The Business Standard that the management had to cut IPLC rent amid tough competition from International Terrestrial Cable (ITC) operators.

According to company sources, the international terrestrial cable operators are the primary competitors of Bangladesh Submarine Cable, sometimes offering lower tariffs to attract customers due to their lower costs compared to the state-owned firm.

As a result, the state-owned company has been losing market share over the years.

In March, the Bangladesh Submarine Cables announced a 10% reduction in the price of all types of internet bandwidth.