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.
Revenue from Customers Services Improves in Q1 FY 078/79
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.
Revenues From Other Sources Decline
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’s Profit Grows | Q1 FY 078/79
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 Attributes Economic Gains to Multiple Factors
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:
- 4G’s substantial customer growth has increased data, voice, and SMS services. Besides, 2G/3G’s recent expansion has also increased its customer base. The attraction towards FTTH has aided earning from Fixed Network services.
- Vaccination against COVID-19 has helped to restore business operations to a greater extent from the first quarter of FY 078/79.
- NTC’s COVID-19 relief package couldn’t draw profit to the company. However, the company’s service maintenance, quality improvement has attracted customers to its services which have contributed to the company’s revenues.
- COVID-19 pandemic, roaming services, and OTT has not been favoring the company’s business. However, online work, online classes, social networking, internet-based entertainment has increased. This has increased NTC’s Voice, Data, and SMS have all grown by 7, 15, and 335% respectively in Q1 FY 078/79 from the previous FY for the same period.
NTC Aided by 4G Expansion, and FTTH Service
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.
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