Nepal Telecom’s Profit Declines Amidst COVID-19 Pandemic

Nepal Telecom‘s profit declined in the last Fiscal Year (077/78). As per the telco’s financial report, the company’s total earnings dwindled by over 2 Arabs and thirty crores compared to the Fiscal Year 076/77.

In FY 077/78, the company earned a profit of Seven Arabs, forty-five crores, forty lakhs, and eighty-five thousand (Rs.7,45,40,85,000). In Fiscal Year 076/77, the company’s incomes had stood at Nine Arabs, Seventy-four crores, eighty-nine lakhs, and fifty-six thousand (Rs. 9,74,89,56,000).

Check out: Nepal Telecom becomes the highest taxpayer in the telco sector in FY 2077/78

Improvement in revenues from services

Meanwhile, the state telco has improved its earnings from its core services. In FY 076/77, NTC had earned service revenues of thirty-four Arabs, sixty-one crores, ninety-nine lakhs, and sixty-four thousand (Rs. 34,61,99,64,000). This has increased by one Arab, twenty crores, thirty-seven lakhs, sixty-nine thousand amounting to thirty-five Arabs, ninety crores, thirty-seven lakhs, and thirty-three thousand (Rs. 35,90,37,33,000) in 077/78. This was an increase of 3.70 percent Year on Year (YoY) on the revenue from services.

Also read: Nepal Telecom’s Revenue Grows By NRs.1 Billion In Q3 2077/78

NTC’s Financial Indicator	FY 2077/78	FY 2076/77
Net Profit	Rs. 7,45,40,85,000	Rs. 9,74,89,56,000
Revenues from service	Rs. 35,90,37,33,000	Rs. 34,61,99,64,000

NTC’s Income Affected By COVID-19

NTC’s Income for FY 2077/78 results come amidst the COVID-19 Pandemic. After the lockdown began, the epidemic’s effect spanned across all the businesses which have directly and indirectly reduced its earnings. NTC has attributed its shrink in profits to the below factors.

• The reduced economic activities due to the Coronavirus pandemic.
• Reduced interest rates from the banks and financial institutions on the company’s deposits.
• Highly cost-effective data packs for the customers during the COVID-19 lockdowns by keeping the lowest profit margins.
• Huge fall in revenues from roaming with COVID-19 related bans on travels and increase in OTT platforms.
• Increase in the minimum wage for human resources, maintenance costs, and fluctuations in currency exchange rates.
• Increased investments for 4G and FTTH expansions across the country.

Don’t miss: Ntc brings Lockdown Stay Connected Offer

Despite NTC’s mixed-bag financial reports, its investments in 4G, FTTH and 5G is likely to bring in long-term benefits when the COVID-19 effects thaw. Are you using NTC’s COVID-19 relief packs? Let us know how it has been beneficial to you.