The state-owned telco Nepal Telecom (NTC) has released its financial results for the third quarter of the fiscal year 2077/78, which indicate an NRs. 1 billion increase in revenue.
In the third quarter of the previous fiscal year, the company made NRs. 8.8 billion in sales, while in the third quarter of this fiscal year, it made NRs. 9.72 billion.
|Quarterly FY 2077/78||Revenue||Profit|
|First Quarter||NRs. 8.63 billion||NRs. 1.51 billion|
|Second Quarter||NRs. 9.08 billion||NRs. 1,77 billion|
|Third Quarter||NRs. 9.72 billion||NRs. 2,59 billion|
|Total in three quarters||NRs. 27.45 billion||NRs. 5,88 billion|
According to the figures, the telco made NRs. 8.63 billion in revenue in the first quarter, followed by NRs. 9.8 billion in the second quarter. The revenue for the third quarter increased by a substantial 7% (compared to Q2 2077/78), totaling NRs. 63 crores, 68 lakhs.
The current service revenues for the first three quarters of the fiscal year 2077/78 (Shrawan-Chaitra) are up 2.29 percent from the previous fiscal year 2076/77 (same period), totaling NRs. 27.45 billion.
Active Users Have Grown
According to NTC Managing Director Dilliram Adhikari, “the financial results have improved due to the growth of active users as well as a rise in FTTH subscribers.” Of all ISPs, the company added the most FTTH customers during the pandemic era.
He went on to say that NTC’s active users have increased by ten lakhs over the previous year.
The research, however, is not entirely optimistic for the country’s largest telecom operator. Despite strong sales growth, the company’s net profits fell in the first nine months of Fiscal Year 2076/77 compared to the same period the previous year.
In the first nine months of the current fiscal year, the company made a net profit of 5.88 billion. This is a drop from the previous year’s NRs. The corporation made $7.56 billion in earnings in the first nine months of the previous fiscal year (Shrawan-Chaitra). This translates to a profit reduction of around NRs. 1.68 billion for NTC this fiscal year.
|Fiscal Years||Net Profits|
|Fiscal Year 2076/77 (3 quarters)||NRs. 7.56 billion/-|
|Fiscal Year 2077/78 (3 quarters)||NRs. 5.88 billion/-|
|Difference||NRs. 1.68 billion|
Reasons for NTC’s Profit Decline
The decline in net profit was attributed to a number of factors, according to Nepal Telecom. For example:
- COVID-19 has a major impact on global trade.
- Interest rates have been slashed, reducing the profits from the company’s bank and other financial institution deposits.
- During the lockdown time, offering data bundles at low prices has reduced the profit margin.
- Travel bans have resulted in a significant drop in revenue from roaming services.
- Users have shifted away from NTC’s services as the usage of OTT platforms has grown.
- Increases in minimum wages, infrastructure costs, and currency exchange rate fluctuations have all increased financial obligations.
- NTC’s spending this year has been boosted by investments in 4G and FTTH growth.
Internet Consumption Continues To Climb
NTC’s data usage has skyrocketed as a result of the lockdown following the COVID-19 breakout. Going digital has been the standard since most people began “working from home.” As a result, mobile users purchased data packages in a variety of sizes. Read more about how Internet use has risen in Nepal as a result of the pandemic.
According to NTC’s MD Adhikari, data use has increased by 28% since Baisakh. Furthermore, fixed-line broadband ADSL and FTTH bandwidth use has increased by 30% over the same time frame.
NTC had 25 lakhs and 44 thousand 4G subscribers as of Magh, compared to 88 lakhs and 60 thousand 3G subscribers. Similarly, the telco has approximately 8 lakhs 37 thousand ADSL subscribers and 4 lakhs and 43 thousand FTTH subscribers.