Nepal Telecom saw its profit decline by 7.86% in Fiscal Year FY 2079/80. As per its latest financial report, the state-backed company earned over 7.80 arab in profit in the last fiscal year which is a decrease of over Rs 66 crores compared to the previous fiscal year. However, the company was able to grow its total revenue by over Rs 49 crores surpassing Rs 44 arab.
The company earned 7 arab, 80 crores, 45 lakhs, and 26 thousand in profit in FY 2079/80 (till the end of Ashar, 2080). It’s a decrease for the company of 7.86% or Rs 66 crores, 62 lakhs, and 7 thousand in amount. In FY 2078/79, the communication giant posted Rs 8 arab, 47 crores, 7 lakhs, and 33 thousand in total profit.
| Ntc profit in FY 2079/80 | Ntc profit in FY 2078/79 | Difference |
| Rs 7.80 arab | Rs 8.47 arab | Rs 66.62 crore↓ |
Likewise, the company’s total operating revenue stood at Rs 37 arab, 91 crores, 97 lakhs, and 89 thousand in FY 2078/79. This FY till the end of Ashar, 2080, the revenue dropped to Rs 36 arab, 80 crores, 39 lakhs, and 30 thousand. It was a decrease of 2.94% or Rs 1 arab, 11 crore, 58 lakhs, and 58 thousand.
| Total operating revenue in FY 2079/80 | Total operating revenue in FY 2078/79 | Difference |
| Rs 36.80 arab | Rs 37.91 arab | Rs 1.11 arab↓ |
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Nepal Telecom generated 44.86 arab in revenue in FY 2079/80
Similarly, in FY 2079/80 (till Ashar, 2080), Ntc generated a total of 44 arab, 86 crores, 82 lakhs, and 73 thousand. In FY 2078/79, the company posted Rs 44 arab, 37 crores, 46 lakhs, and 56 thousand in total revenue. As it stands, it was able to mark a year-to-year increase of 1.11% or Rs 49 crores, 36 lakhs, and 16 thousand.
| Ntc revenue in FY 2079/80 | Ntc revenue in FY 2078/79 | Difference |
| Rs 44.86 arab | Rs 44.37 arab | Rs 49.36 crores (1.11%↑) |
Ntc says that currently, its paid-up capital stands at 18 arab while 75.82 arab remains in funds and reserves.
In the meantime, the fall in profit translated to its decline in per-share revenue and net worth as well. In FY 2079/80, Nepal Telecom’s per share revenue was Rs 43.36 before that, the per share earning in FY 2078/79 stood Rs 47.06. Similarly, the company’s net worth per share was Rs 521.27 in FY 2079/80 while it was Rs 528.13 in FY 2078/79.
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Reasons for changes in profit for the company in FY 2079/80
In recent years, Ntc has witnessed series of profit decline despite growing its user base. Less use of cellular voice, growth of OTT apps, cheaper data packs due yo cut throat competition has been accounted for the company’s less then inspiring financial returns.
Here are the reasons for the decline of Nepal Telecom’s profit for the FY 2079/80, as per the company.
- The growing use of international roaming services was worth 22 crores, 46 lakhs during FY 2079/80. Expenses directly related to operating services increased. Likewise, bank interest rate changes increased Rs 1 arab, 85 crores, and 77 lakhs in financial revenue. Find how to activate roaming service in Nepal Telecom.
- The change in foreign exchanges led to the gain of Rs 22 crore, 24 lakhs in foreign exchange gain.
- Readjustment in domestic interconnection tariff is attributed as another reason for the changes in the company’s profit amount. Similarly, the expansion of 4G coverage and data around the country, and cheaper data packs are treated as other reasons for lower profit. Also, the growth of OTT has led to a decrease in revenue by Rs 68 crores, 37 lakhs.
- The lack of electricity supply and timely maintenance has forced the network outage in some areas.
- Revenue dropped due to the changes in the telecommunication service charges as per the Finance Act, 2079.
- Resumption of the capacity-building programs which had stopped after COVID-19 and the increase of employees’ wages.
- Damage to its infrastructures and impact on network expansion during infrastructure building, repairing, transfer, etc. municipalities, and rural municipalities. Do read: Lack of Coordination in Construction Works Deprived Customers of Our Services: Ntc
- Having provided continuous and improving quality in remote areas from where financial return is less expected.
Nepal Telecom is Nepal’s largest communication service provider with an array of mobile and fixed-line services. The company boasts the highest market share in voice and broadband services in the country.
