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OPERATING COMPANIES BUSINESS REVIEW
Axiata Group Berhad | Annual Report 2016
043
EBITDA margin was lower by 19.5 percentage
points mainly due to one-off merger related fees
and charges.
Robi’s profitability was negative at BDT3.9 billion,
impacted by accelerated depreciation resulting
from the nationwide network modernisation
especially in the Chittagong-Comilla region.
One-off merger expenses also affected EBITDA
growth which shrank by 24.9% during the year.
Robi’s operating profit (EBITDA) margin was
27.2% in 2016, down 9.3 percentage points from
the previous year. This was due to its marginal
revenue growth, higher network operating
expenses from continued network investments,
and one-off merger fees and charges. Due to its
sustained investment in its nationwide network
modernization, Robi was lagging in terms of
expected profitability in 2016.
Outlook for 2017
Following the completion of the merger
between Robi and Bharti, the new merged
entity is now sharply focused on leveraging on
the synergies of the merged company. Moving
into 2017, Robi plans to deliver on its promise
of creating the number one network in the
country and has begun making inroads on its
strategic plans in this regard, by focusing on the
smooth integration of its expanded network. As
the second largest mobile phone operator in
Bangladesh with 33.8 million subscribers, Robi is
in a strong position to offer the best network
experience upon completion of its network
integration exercise.
Robi will also leverage on Airtel brand’s strength
within the marketplace as the telco brand of
choice for the youth market in Bangladesh. Robi
is continuing with its transformation journey to
become the New Generation Digital Champion
in Bangladesh by strengthening its digital
offerings.
Robi looks forward to deriving the benefits
from the injection of fresh talent from Airtel
as a result of the merger, with the new team
working collaboratively to further strengthen
the Company’s value offerings. In the coming
year, Robi will also be embarking on its drive to
expand its digitisation programme throughout
all processes and business units within the new
merged entity.
BLENDED ARPU
184
184
2015 2016
BLENDED MoU
(Per Sub Per Month)
190
202
2015 2016
Blended ARPU/RGB/month
Minutes of use/RGB/month
Key Highlights
• 1st Cambodian telco offering 4G+
& 4G in all provinces
• 1st Cambodian telco to launch
SmartPay, a payment solution via
virtual MasterCard
• 100% of base stations deployed
with 3.75G; 60% of base stations
deployed with 4G LTE
• Double-digit growth of Revenue,
PAT, EBITDA, ROIC
About Smart
Smart Axiata Co., Ltd., a leading mobile
telecommunications company of Cambodia,
currently serves over 8 million subscribers under
the 'Smart' brand.
In January 2014, Smart launched its 4G LTE
network and became the first mobile operator
in Cambodia to provide true 4G services. 4G LTE
powered by Smart, the fastest mobile Internet
in Cambodia, is now available across all 25
provinces widely. Smart also provides 2G, 2.5G,
3G and 3.75G mobile services, supporting the
very latest in multimedia and mobile Internet
services as well as international roaming
across more than 190 countries. Its extensive
nationwide network coverage covers more than
98% of the Cambodian population. In September
2016, Smart launched 4G+ also known as LTE
Advanced using Carrier Aggregation, fostering
its data leadership position in Cambodia.
Through its partnership with Apple, Smart is
the first and only telecom operator partner of
Apple in Cambodia able to offer iPhones and
iPads. Smart, moreover, is the exclusive partner
of Universal Music in Cambodia. Being a strong
advocate of digital innovation, Smart has
launched various ranges of value added services
and digital services such as SmartLuy, Smart
Life Insurance, SmartPay and Smart Music.
REVENUE
52,395
52,682
2015 2016
+0.5%
EBITDA & EBITDA
MARGIN (%)
36.5%
27.2%
19,113
14,348
2015 2016
-24.9%
(normalised +2.5%)
BDT Million
BDT Million
PAT
4,004 (3,892)
2015 2016
->100%
SUBSCRIBERS
28.3
33.8
2015 2016
+19.5%
1
BDT Million
Million
Robi
1
2015 subscriber numbers are based on Robi's
customer base pre-merger while 2016 subscriber
numbers are based on Robi-Airtel post-merger
consolidated subscriber base.