Robi to form subsidiary for e-payment services
The second largest telecom operator has taken the initiative following the central bank’s objection to its existing app-based payment services
Robi Axiata Limited, the country's second-largest telecom operator, has decided to form a subsidiary company for providing electronic payment services to its customers.
The company will hold 100% ownership of the subsidiary – named Smart Pay Limited, officials familiar with the matter told The Business Standard.
"We have been providing such services through our existing app Robi Cash. Customers can recharge their account balances, pay utility bills and buy train tickets using the app, but they are not allowed to cash out or recharge balances to accounts of other operators," said a senior official of the company, wishing to remain unnamed.
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"Meanwhile, the Bangladesh Bank has objected to these types of services. It says a separate and authorised subsidiary company is needed for that, which is why Robi came up with the initiative," he added.
Incorporated in 1997 as Telekom Malaysia International (Bangladesh), the company was popular under the brand name "Aktel". In 2010, it was rebranded as "Robi" and the company changed its name to Robi Axiata Limited. There was also a merger with Airtel.
Currently, the Axiata Group of Malaysia holds 61.82%, Bharti Airtel of India holds 28.18%, and the general public holds the remaining 10% shares of the company.
It made its debut on the Dhaka and Chattogram bourses, with the largest-ever IPO, in December 2020.
The latest data says Robi incurred a Tk12.16 crore loss in the April-June quarter of 2022 owing to volatile foreign exchange markets.
Its revenue was Tk2,105 crore during the period, which was Tk2,030 crore in the same time of the previous year.
In the January-June period this year, revenue of the second-largest telecom operator stood at Tk4,124 crore, up 3% year-on-year. Its net profit dropped to Tk27.68 crore in the first half, from Tk80.93 crore in the same period of 2021.
The company recommended 5% cash dividends for its shareholders for FY21.
