Bangladesh Satellite-1 earns Tk163.97cr net profit in 5 years

Bangladesh’s first satellite, Bangladesh Satellite-1, generated a total net profit of Tk163.97 crore and revenue of Tk764.10 crore through commercial operations over the past five fiscal years.

Posts, Telecommunications and Information Technology Minister Faqir Mahbub Anam disclosed the information in parliament today (24 June) while responding to a written question from Cumilla-4 MP Hasnat Abdullah.

In his question, Hasnat Abdullah sought to know the total net profit earned from the first satellite over the past five years and the economic rationale for launching Bangladesh Satellite-2.

He also questioned whether the new project could avoid becoming another “white elephant” after alleging that Bangladesh Satellite Company Limited (BSCL) had failed to generate the expected revenue from commercial operations and transponder leasing.

Although the lawmaker referred to Bangabandhu Satellite-1 in his written question, the minister used the name Bangladesh Satellite-1 in his reply.

According to media reports, during the tenure of the interim government, various establishments named after Bangabandhu Sheikh Mujibur Rahman and his family members were renamed.

As part of that process, Bangabandhu Satellite was renamed Bangladesh Satellite and has since been referred to by that name in official documents.

In his reply, Mahbub said Bangladesh Satellite-1 remains in commercial operation, providing services to public and private television channels, DTH and VSAT operators, selling satellite bandwidth abroad and supporting emergency telecommunications during disasters.

According to BSCL’s financial reports presented to parliament, Bangladesh Satellite-1 earned Tk129.11 crore in revenue and Tk84.25 crore in net profit in FY2020-21, followed by Tk130.66 crore in revenue and Tk85.29 crore in net profit in FY2021-22.

In FY2022-23, it generated Tk147.99 crore in revenue but recorded a net loss of Tk73.57 crore. The satellite returned to profitability in FY2023-24 with Tk169.56 crore in revenue and Tk29.64 crore in net profit, while FY2024-25 revenue reached Tk187.07 crore and net profit Tk38.36 crore.

Overall, revenue during the five-year period stood at Tk764.10 crore, while cumulative net profit reached Tk163.97 crore.

The minister said the loss in FY2022-23 resulted from the transfer of satellite assets to BSCL on 30 June, 2022, and the inclusion of depreciation costs from that fiscal year.

“Despite the accounting loss, the company returned to profit in subsequent years.”

Regarding Bangladesh Satellite-2, he said work is underway to launch it as an Earth Observation Satellite that would support agriculture, fisheries, disaster management, vessel tracking, the blue economy and maritime security.

To ensure the project’s economic viability, the government has initiated a feasibility study, he said.

The minister added that several internationally reputed satellite manufacturers have expressed interest in collaborating on the project. 

He said, “Proposals from three companies have already been received and are currently under review. The next stage of the project will proceed only after the feasibility study is completed and its findings are evaluated.”