Nepal Telecom (NTC) has seen its profit fall by 14.20% in the first quarter (Q1) of the current Fiscal Year FY 2081/82. At the same time, the company has also seen a reduction in its total revenue during the same period.
According to the unaudited financial report, Nepal Telecom generated Rs ten arba, six crore, thirty-seven lakh, and thirty-five thousand (Rs ten billion, sixty-three million, seven hundred thirty-five thousand) in total revenue in the first quarter of FY 2081/82. It’s a decline by Rs fifty-eight crore, fifty-lakh, and fifty-seven thousand (Rs five hundred eighty-five million, fifty-seven thousand.) from the same period of FY 2080/81. Previously, the company brought in Rs ten arba, sixty-four crore, eighty-seven lakh, and ninety-two thousand (Rs ten billion, six hundred forty-eight million, seven hundred, ninety-two thousand.).
| Nepal Telecom total revenue in First quarter 2081/82 | Nepal Telecom total revenue in First quarter of 2080/81 | Difference |
| Rs 10,06,37,35,000 | Rs 10,64,87,92,000 | 58,50,57,000↓ |
Likewise, the state-backed telecom operator earned Rs eight arba, sixty-eight crore, one lakh, and eighty-five thousand (Rs eight billion, six hundred eighty million, one hundred, eighty-five thousand). This marked an increase of Rs nine crore, fifty-one lakh, and twenty-two thousand (Rs ninety-five million, one hundred, twenty-two thousand.). On the other hand, in the first quarter, FY 2080/81, the same figure stood at Rs eight arba, fifty-eight crore, fifty lakh, and sixty-three thousand (Rs eight billion, five hundred, eighty-five million, five hundred, sixty-three thousand.).
| Nepal Telecom total operating revenue in First quarter 2081/82 | Nepal Telecom total operating revenue in First quarter 2080/81 | Difference |
| Rs 8,68,01,85,000 | Rs 8,58,55,63,000 | Rs 9,51,22,000↑ |
Ntc profit declines in first quarter FY 2081/82
Unfortunately, again, the company has posted a total profit of Rs one arba, seventy-three crore, ninety-five lakh, and eighty-nine thousand (Rs one billion, seven hundred thirty-nine million, five hundred, eighty-nine thousand) in Q1, FY 2081/82. It’s a sharp fall from the previous period. In Q1 FY 2080/81, the company posted a total profit of Rs two arba, two crore, seventy-four lakh, and thirty-one thousand (Rs two billion, twenty-seven million, four hundred, thirty-one thousand.). The company witnessed a decline of Rs twenty-eight crore, seventy-eight lakh, forty-one thousand (Rs two hundred, eighty-seven million, eight hundred, forty-one thousand.), or 14.20%.
| Nepal Telecom profit in First quarter 2081/82 | Nepal Telecom profit in First quarter 2080/81 | Difference |
| Rs 1,73,95,89,000 | Rs 2,02,74,31,000 | Rs 28,78,41,000↓ |
More: Latest Ntc data packs in 2081
Reasons for low revenues
- International roaming and interconnection have brought a loss of Rs nineteen crore, forty-two lakh, and forty-four thousand (Rs one hundred ninety-four million, two hundred, forty-four thousand.) due to the increasing use of OTTs leading to a fall in revenue.
- OTT use has led to less use of voice and SMS services resulting in less revenue from telecom services.
- The company hasn’t been able to make investments as it has had to pay Rs 20 arba to Nta for its new license renewal. Likewise, the decision to make the payment was made in Baisakh, 2081 but amounts were withdrawn before their maturity. So, the changes in the interest rates caused the company a loss of Rs 57 crore, 98 lakh (Rs five hundred, seventy-nine million, eight hundred thousand) in financial revenue.
- Committing to the expansion of telecom services as a duty being a “national telecom company” in rural areas that have a low return value.
- Policy changes in service rates.
- Buying bandwidth at lower rates than in previous years.
- Having spent ample amount of resources on service improvement and expansion in rural and remote areas.
- In the meantime, the company’s per-share unit earning stands at Rs 38.66. It’s a decline from Rs 45 last time around.
Also see: Latest Nepal Telecom Fiber Internet Prices [2024]
The first quarter financial report confirms the telecommunication industry’s continued struggles with revenue generation. Let’s hope there is a positive financial outcome for Ntc in the coming days.
