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Nepal Telecom (NTC) has generated revenue of 11 Arab in Q1, FY 078/79, starting the current Fiscal Year with a strong financial profile. Meanwhile, the company has also improved its economic profile in the profit department this term compared to the previous FY’s first three months. This could also be a sign of its financial revival after COVID-19 subdued its earnings for months.
NTC (Nepal Telecom), the state-backed telecom company has released its financial reports for the First Quarter of the Fiscal Year 078/79. As per the report, the company accumulated a total revenue of 10 Arab, 95 crores, 75 lakh, and 56 thousand.
NTC incurred a tremendous 40% decline in its revenues in the Q1 FY 077/78 due to COVID-19 and its effects on its overall operations. However, the company has shown good financial strength after the three months of the current Fiscal Year 078/79. This is an improvement for the company from the same period of the previous FY.
|S.N||Quarterly period||Ntc Revenue|
|1||Q1 FY 078/79||Rs.10,95,75,56,000|
|2||Q1 FY 077/78||Rs.10,10,44,75,000|
In the first quarter of FY 077/78, NTC had recorded revenues of 10 Arab, 10 crores, 44 lakh, and 75 thousand (10,10,44,75,000). This year, the company has increased the revenue number by a healthy 85 crore, 29 lakhs, and 81 thousand (85,29,81,000) from the first quarter of the last FY 077/78.
In the first three months of FY 078/79, NTC has increased its revenue from customers’ service over the same period of the previous FY 077/78. In Q1 077/78, NTC netted 8 Arab, 63 crores, 53 lakh, and 40 thousand (8,63,53,40,000) from customers’ services.
Coming to this year’s Q1 FY 078/79, the company earned 9 Arab, 77 crores, 53 lakh, and 62 thousand (9,77,53,62,000) in revenues. This is an increase for NTC by 1 Arab, 14 crores, 22 thousand (1,14,00,22,000).
|S.N||Quarterly period||Ntc’s revenue from customer services|
|1||Q1 FY 078/79||Rs.9,77,53,62,000|
|2||Q1 FY 077/78||Rs.8,63,53,40,000|
NTC’s total revenue has shown an increased graph this term, however, its revenues from other sources have taken a dive.
As per the data, NTC’s revenues from other sources have decreased by 28 crores, 70 lakh, and 41 thousand this term.
In the last Q1 FY 077/78, NTC collected 1 Arab, 46 crores, 91 lakh, and 35 thousand from other sources. Meanwhile, in Q1 FY 078/79, the company growth stalled at 1 Arab, 18 crores, 20 lakh, and 94 thousand.
|S.N||Quarterly period||Ntc revenues from other services|
|1||Q1 FY 078/79||Rs.1,18,20,94,000|
|2||Q1 FY 077/78||Rs.1,46,91,35,000|
NTC has also shown a healthy profit for the first quarter of the current Fiscal Year. As per the reports, the company’s profit after tax and other earnings reached above 2 billion.
In the previous FY 077/78 report, NTC had generated a profit of 1 Arab, 51 crores, 77 lakh, and 69 (1,51,77,00,069) till the end of Ashoj. For the same term this FY, NTC’s profit grew to 2 Arab, 25 crores, 26 lakh, and 13 thousand (2,25,26,13,000). This is an increase in profit by 73 crores, 49 lakh, 12 thousand, 9 hundred, and 31 (73,49,12,931) for the state telco.
|S.N||Quarterly period||Ntc Profit|
|1||Q1 FY 078/79||Rs.2,25,26,13,000|
|2||Q1 FY 077/78||Rs.2,25,26,13,000|
NTC’s exceptional revenues for Q1 FY 078/79 come on the back of several factors. NTC has attributed the latest financial strength to the following:
NTC’s 4G coverage and subscribers are increasing at an unprecedented rate. As per NTA’s report, NTC had 26 lakhs, 86 thousand, 2 hundred, and 55 (26,86,255) customers till Baisakh this year (2078). Fast forward to Bhadra, the number of NTC’s 4G subscribers has soared to 60 lakhs, 68 thousand, 2 hundred, and 55 (6,268,039). The growth in the fourth-gen customer base has aided NTC’s improved financial strength and will continue for the foreseeable time.
|S.N||Month||Ntc 4G subscribers|
|1||Q1 FY 078/79||26,86,255|
|2||Q1 FY 077/78||62,68,039|
|3||4G Customer growth||35,81,784|
Besides, NTC’s FTTH service that comes with the popular Triple Play has become a massive hit among internet consumers in Nepal. The unique service comes with a telephone service, fiber broadband, and NTC’s IPTV service NT TV all over the single fiber cable.
The COVID-19 effects have continued to thaw and this could gradually steer NTC back to profits. The fierce expansion of telecom and fixed-line service will continue to boost NTC’s financial revival in the coming months.
NTC’s financial reports for Q1 078/79 could hint at its likely profitability in the months past COVID-19’s effects on its businesses. The company’s both previous and profit have increased in the first 3 months compared to the same duration of the previous Fiscal Year.
NTC is allocating its 22% shares for its customers soon. The profit potential of such a large telecom company will further solidify when it begins the 5G service.
Do you expect NTC to be a major draw when its larger shares will arrive for the public? Do share your opinions in the comments below.