Robi incurs Tk 2.8 billion loss in 2017

Robi incurred a net loss of Tk 2.8 billion in 2017, the company has said in a statement.

The mobile operator said it had incurred the losses due to sustaining investments to develop their network and ‘a number of market and regulatory factors’, despite significant growth in subscribers and revenue.

Robi added 9.1 million new subscribers in 2017, raising its total base to 42.9 million. Internet users comprise 56.6 percent of the user base.

The company said it had earned Tk 68.3 billion in revenue, a year-on-year increase of 29.7 percent due to its ‘successful merger’ with Airtel.

But Tk 24 billion in investment to expand its 2G and 3.5G networks and Tk 28.9 billion in payment to the government resulted in losses, it said.

“The intensification of market competition around pricing for both data and voice, made the financial results particularly bleak for the company in 2017.”

The company blamed anti-competitive practices such as predatory pricing and cross-subsidy for “unfair” pricing structure and “unhealthy” market competition.

“The exorbitantly high taxation regime is putting further strain on the financial results of the smaller players,” it added.

The financial situation of Robi presents a ‘dire’ indication of the diminishing ability of mobile operators to “finance the ensuing digital revolution in the country,” the company said.

Robi Managing Director Mahtab Uddin Ahmed said: “Robi is on its way to becoming the number 1 network of Bangladesh. With 4G and MNP coming up, we are confident that we can provide significantly better customer experience in terms of data speed and stronger network to our subscribers.”

“With Airtel on board as the ‘youth brand’ and Robi as the ‘digital brand’, we have successfully increased our subscriber base by 26.8 percent in 2017.”