KUALA LUMPUR: Axiata Group Bhd says it is unable to determine the financial consequences of the recent service outage affecting its 61.8 per cent-owned subsidiary Robi in Bangladesh.
The group is currently working with Bangladesh's telecom regulator to restore internet services there.
"At this point, we are unable to speculate on the financial impact of Robi's service disruption.
"We are working towards restoring internet services under the guidance of the telecoms regulator in Bangladesh, while ensuring the safety and security of our employees, assets and operations," Axiata said in response to Business Times' queries.
Axiata's earnings are expected to shrink due to the impact of large-scale protests in Bangladesh, which had turned violent in the past week.
Affin Hwang Capital on Tuesday said Bangladesh is one of Axiata's key markets through Robi and edotco.
In 2023, Robi contributed 21 per cent of earnings before interest, taxes, depreciation, and amortisation (Ebitda) while Bangladesh accounted for 29.7 per cent of edotco's revenue.
The firm estimated that a week's loss of revenue from Robi could weaken Axiata's net profit by up to three per cent.
"The majority in Bangladesh is a prepaid market, accounting for 98 per cent of Robi's mobile customers. The temporary suspension of mobile internet services may weaken Axiata's short-term profits," it noted.
However, Affin Hwang does not anticipate a complete shutdown of telecommunications in Bangladesh to impact edotco's short-term revenue, as the group is secured by long-term contracts.
The firm maintained its earnings forecasts for Axiata for 2024 to 2026 unchanged for now, pending further updates on the situation in Bangladesh.