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Ntc Sees its Profit Decline in Q3 FY 078/79

Nepal Telecom (Ntc) collected over 28 billion in total operating revenue but saw its income take a slump in the third quarter (Q3) of Fiscal Year (FY) 078/79. Find more in detail below.

Till Chaitra FY 078/79, Ntc generated total operating revenue of 28 billion, 21 crores, 96 lakhs, and 12 thousand. In a year-to-year comparison, it is an increase of 76 crores, 82 lakh, and 59 thousand.

By comparison, the telco generated 27 billion, 45 crores, 13 lakh, and 53 thousand till Chaitra in last fiscal year 077/78. That means, the government-backed operator grew its revenues by 2.8 percent this term.

Total operating revenue Q3, 078/79Total operating revenue Q3, 077/78GrowthGrowth in percent
28,21,96,12,00027,45,13,53,000  76,82,59,000↑2.8

And this has also translated to higher total revenues this quarter for the leading operator. Till Chaitra 2078, the company grew its total revenues by 86 crore, 29 lakh, and 56 thousand making it 32 billion, 53 crores, 67 lakhs, and 29 thousand. This is an increase of 2.72 percent. Also read: Ntc 4G Coverage Reaches 95% Local Levels, With 91% Sites On-aired

In the previous FY in Q3, Ntc generated 31 billion, 67 crores, 37 lakh, and 74 thousand in revenues till Chaitra, 2077.

Total Profit Shrinks for NTC

But despite the encouraging revenues, Ntc saw its total profit take a slump in Q3 FY 078/79. In the previous FY till Chaitra 2077, the company generated 5 billion, 88 crores, 44 lakhs, and 72 thousand in total profit.

But this term, it decreased by 44 crores, 91 lakh, and 25 thousand. Till Chaitra 2078, the company’s total profit stood at 5 billion, 43 crores, 53 lakhs, and 47 thousand.

Total profit in Q3, 078/79Total profit in Q3, 077/78Loss

Check out: How to transfer balance in Ntc?

Reasons for the decline in profit

Likewise, Ntc has attributed the following reasons for the slight decline in its earnings.

  • Higher use of OTT services that inspired less revenue generation from roaming and international interconnection services due to Covid-19.
  • Less subscription of services due to the third wave of Covid-19 in Magh, 2078.
  • Reduction in domestic interconnection service charges as per the Guidelines for interconnection charges.
  • Higher maintenance costs due to wider expansion of telecom services. Also, the increase in the depreciation of fixed assets, etc. contributed to the decline in profit for the company.
  • Due to affordable data packages to keep people connected during Covid-19 lockdowns. While data consumption has increased massively, revenue has not returned in the same proportion from the company’s GSM services
  • Another reason is the chipset shortages and difficulties in transportation and rising tariffs after the pandemic. Likewise, the import of equipment and other hardware was delayed and the company could not extend the service as planned.

For you: Ntc Announces All Net Voice Pack at Affordable Rates

How satisfied are you with Ntc’s data packs and voice services? Do share in the comments below.


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