Robi posts Tk 66cr net loss in Q3

Michael Kuehner, second from left, managing director of Robi Axiata, attends a press meet in Dhaka yesterday to announce the company's third quarter performance. Mahtab Uddin Ahmed, chief financial officer; Pradeep Shrivastava, chief market officer; and Matiul Islam Nowshad, chief human resources officer, were also present. Photo: Robi

Robi, the country's third largest mobile operator, yesterday posted losses of Tk 66 crore in net profits for the third quarter (Q3) of 2012.
The high tax regime that includes the SIM tax and other regulatory charges is to blame for Robi's failure to rake in profits in Q3, said Mahtab Uddin Ahmed, the company's chief financial officer.
Robi's revenues in Q3 stood at Tk 1,014.6 crore, a 29.7 percent year-on-year increase.
“During the third quarter, Robi continued with its strong revenue growth, primarily driven by new subscribers,” Ahmed said.
But the mobile phone operator's EBITDA (earnings before interest, taxes, depreciation and amortisation) were impacted by the tax charges.
The company has crossed the 2 crore subscriber-mark during the quarter, adding 16 lakh subscribers along the way.
“Over the years, Robi has made significant contributions to the national exchequer and has actively contributed towards the development of the mobile telecommunications industry. But, it could not generate enough profits to give returns to its shareholders -- since 2006.”
Robi's total capital investment since its inception 16 years ago stands at Tk 9,600 crore, while it deposited a total of Tk 8,800 crore to the state coffers, Ahmed said.

The investors or shareholders of the company have taken Tk 170 crore in dividend and technical and management fees, he said.
The quarter saw Robi add 203 new base-transceivers, bringing the total number of BTS stands to 8,595.
The country's business environment is not yet conducive to profit-making, said Michael Kuehner, Robi's managing director and chief executive officer.
He further said the current estimation for third generation spectrum licences is not economically feasible, and he hopes the government would decrease the proposed price.
The telecom ministry has proposed $20 million for per megahertz spectrum in the 2,100 MHz band for 3G or 4G technology service.