Surges in administrative cost bite off Robi profit
Robi’s profit dropped 25% as the administrative cost surged 64% in the April-June quarter
Robi Axiata Limited, the second largest mobile phone operator in the country, has reported a 25% year-on-year drop in profit due to a 64% increase in the administrative cost including salaries in the second quarter of 2021.
The mobile phone operator disclosed the second-quarter un-audited report after a board meeting on Tuesday, according to a source in the company.
It will give a presentation on the second-quarter financial performance through a virtual platform on Wednesday.
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In the April-June quarter, its consolidated net profit stood at Tk46.63 crore and earnings per share at Tk0.09, which was Tk58.37 crore and Tk0.12, respectively, at the corresponding period a year ago.
During this period, its consolidated revenue increased by 15% to Tk2,030.83 crore compared to the same period of the previous year.
At the end of the first half of this year, its consolidated revenue was Tk4,011.83 crore, profit Tk80.93 crore and earnings per share Tk0.15.
In the first quarter, it had paid a 3% interim cash dividend to its shareholders, while the company had refrained from issuing any dividend for the year that ended on 31 December 2020.
Robi has 0.85Hz spectrum for each subscriber while market leader Grameenphone has only 0.59Hz for each subscriber.
Robi is the second largest mobile operator in the country with a subscriber base of 5.19 crore while Grameenphone is in the leading position with 8 crore subscribers.
