Ncell Axiata Limited has recently revealed its financial report for the first quarter of 2021. It shows that the revenue and net profit of Ncell has declined. According to the financial statements, Ncell’s revenue has declined by Rs 1.5 billion in three months with a drop of ARPU despite higher data usage.
As per the financial statistics, Ncell’s revenue has decreased by Rs 1.5 billion in the first quarter of this year as compared to last year. Ncell gathered a sum of Rs 12.039 billion in revenue in the Q1 of 2020. However, the amount declined this year to Rs 10.53 billion.
The impact of the decline in the company’s revenue has impacted Ncell’s profit too.
Last year, Ncell earned a profit of Rs 1.61 billion in the first quarter of 2020. But, this year, it is limited to Rs 1.46 billion. Ncell’s profit has decreased by Rs 155 million in the first quarter of this year as compared to last year.
According to Ncell’s financial statements, the revenue from data has improved. It has been 24 percent of the total revenue in the first three months of this year. It was, however, only 22 percent in the corresponding period of the previous year.
Also, the demand for Ncell data is increasing exponentially, with more than double the volume consumed by the customers. The customers consumed a total of 63.7 million GB of data in the first quarter of 2021 which was just 29.7 million GB in the same period last year. Likewise, smartphone penetration in the Ncell network has also increased by 2% to 65 percent, than that of Q1 2020.
On the other hand, Ncell’s expenses in the first quarter also increased compared to the previous year. The company’s network costs increased by about 2 percent to 12.2 percent.
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%.