Nepal Telecom generates 21 billion in revenue in Q2

State-backed telecom company Nepal Telecom (NTC) has posted its unaudited financial results for the second quarter (Q2) of the current fiscal year FY 2080/81 providing insight into its revenue and profit. It however reflects a grim environment the company and in general Nepal’s telecom industry is facing. This is seen in its fall in revenue and profit. More below:

Total revenue
The reports show that the company generated Rs 21 arab, 30 crore, 93 lakh, and 79 thousand till the end of Poush, FY 2080/81. The figures reflect a declining trajectory for the company. During the same period (Q2, 2079/80) last fiscal year, the company drew in 22 arab, 10 crore, 11 lakh, and 37 thousand. The company’s total revenue declined by 3.58% this quarter. Do note that 1 Arab is 1 billion, 1 crore is 10 million and 1 lakh is 1 hundred thousand.

Likewise, the company’s total operating revenue stood at Rs 17 arab, 24 crore, 67 lakh, and 79 thousand. The figure is a decrease of 4.59% or by Rs 83 crore, 5 lakh, 69 thousand. Last year till the end of Poush, FY 2079/80, the company posted its total operating revenue of Rs 18 arab, 7 crore, 73 lakh, and 48 thousand.

Nepal Telecom profit for second quarter FY 2080/81
The company has posted another decline in its profit. The report shows that its total profit for the second quarter of FY 2080/81 was 3 arab, 93 crore, 14 lakh, and 3 thousand. This declined by Rs 32 crore, 33 lakh, and 73 thousand or by 7.60%. In the second quarter of FY 2079/80, the company earned Rs 4 arab, 25 crore, 47 lakh, 76 thousand. The company says that its per-share income during the same period was Rs 43.68.

Reasons for the decline in Ntc finances in Q2, FY 2080/81
Notably, the company has continuously suffered financial issues in recent financial years. But it’s a general trend in the country as many challenges surround telecom companies. Likewise, Ntc has outlined the following reasons for its latest financial figures:

• Decline in interconnection revenue due to the growing use of OTTs like Viber, messenger, WhatsApp etc. To illustrate, the company saw its revenue fall by Rs 52 crore, 92 lakh, and 75 thousand due to users taking to OTT services.
• Maintenance works not being complete due to the lack of electricity supply which was the result of adverse weather. This led to many network sites being operational.
• Being a national telecom company, it’s giving more priority to service expansion and improvement over profit. At the same time, the expenditures for running services in rural areas continue to increase.
• Service rates decrease after the policies and rules change. This also has contributed to the decline in Ntc revenues.
• Loss of financial revenue by Rs 34 crore, 7 lakhs due to the change in the bank’s interest rates.

Nepal Telecom is Nepal’s largest telecom company in terms of subscriber base. The telco marked its 20th anniversary just recently and continues to play a prominent role in the country’s telecom sector but is facing challenges to keep its finances up. Nepali Telecom