Ncell Axiata Limited recently released its first-quarter financial report for 2021. It demonstrates that Ncell’s revenue and net profit have decreased. According to the financial statements, Ncell’s revenue has decreased by Rs 1.5 billion in three months, with a decrease in ARPU despite increased data usage.
Ncell’s net revenue and profit for the first quarter of 2021
According to financial data, Ncell’s revenue decreased by Rs 1.5 billion in the first quarter of this year compared to the same period last year. Ncell earned Rs 12.39 billion in revenue in the first quarter of 2020. This year, however, the amount has decreased to Rs 10.53 billion.
The impact of the company’s revenue decline has also had an impact on Ncell’s profit.
Ncell made a profit of Rs 1.61 billion in the first quarter of 2020 last year. However, it is restricted to Rs 1.46 billion this year. Ncell’s profit fell by Rs 150 million in the first quarter of this year compared to the same period last year.
Data usage and revenue growth
According to Ncell’s financial statements, data revenue has increased. In the first three months of this year, it accounted for 24 percent of total revenue. However, it was only 22% in the previous year’s corresponding period.
In addition, the demand for Ncell data is growing. Customers consumed 474.5 million GB of data in the first quarter of 2021, up from 280.7 million GB in the same period the previous year. Smartphone penetration in the Ncell network has also increased by 2% year on year to 65% in Q1 2020.
Ncell’s expenses, on the other hand, increased in the first quarter compared to the previous year. The company’s sales and marketing costs increased by about 2% to 12.2%.
According to Axiata’s quarterly financial statement, the revenue of Ncell got dropped by 15.0% in all segments due to adverse impacts from the COVID-19 pandemic and existing business challenges. Whereas EBITDA dropped by 14.1%.
Decrease in ARPU
Ncell’s revenue and profits have declined, but so has its average revenue per user (ARPU). Postpaid users earn Rs 307 and Prepaid users earn Rs 216, respectively.
In the first quarter of 2021, Ncell earned an average of Rs 218 per user. It is Rs 15 less than the average of Rs 233 per user in the first quarter of 2020.
As a result, the company has lost approximately Rs 15 per user this year. A decrease in ARPU has also had an impact on the company’s income and profit.
|Ncell Quarterly statement||Q1 2020||Q1 2021|
|Revenue||Rs 12.39 billion||Rs 10.53 billion|
|Profit||Rs 1.61 billion||Rs 1.46 billion|
|Data revenue share||22%||24%|
|ARPU||Rs 233||Rs 218|