Private telecom operator Ncell generated over Rs 10.46 billion in revenue in the second quarter (Q2) of 2022 marking a decline compared to the corresponding quarter last year. The company meanwhile increased its revenues from mobile data during the same period.
As per Ncell’s parent company, Axiata Group’s latest quarterly financial report that ended on 30 June 2022, the leading private telco drew in total revenue of 10 billion, 46 crores, 55 lakhs, and 80 thousand in Q2, 2022 in which contribution from data stood at 30%. The figure marks the fall in revenue by Rs 9 crores, 76 lakh, and 10 thousand. In Q2, 2021, it posted revenue of Rs 10 billion, 56 crores, 31 lakhs, and 90 thousand.
Ncell Revenue in Q2, 2022
Ncell Revenue in Q2, 20221
Likewise, Ncell posted lower EBTIDA compared to the same period in 2021. The telco collected Rs 5 billion, 61 crores, 86 lakhs, and 70 thousand. In EBTIDA in Q2, 2022. The company generated Rs 6 billion, 19 crore, 94 lakh, and 70 thousand in EBTIDA which marks a fall of Rs 58 crore, and 8 lakhs. It is a decline in EBTIDA by 58 crores, and 8 lakhs from the corresponding period in 2021.
Ncell EBTIDA in Q2, 2022
Ncell EBTIDA in Q2, 2021
During the same quarter, the company’s total operating expenses reached 46.31% against 41.31% in Q2, 2021.
Ncell is seeing revenue decline due to low collection from voice but data performance remains encouraging
In its report, the company says the lower financial performance is down to the decrease in earnings from voice service. Axiata says, Ncell “continued to face challenges with declining International Long Distance (“ILD”) and not being offset enough with growth in the domestic data business. A downward revision also impacted voice revenue in interconnect rate since January 2022.”
Despite incurring losses from voice, Ncell’s revenue from data service has improved in the second quarter of 2022. The operator generated 30 percent of its total revenue this term from data services. The company’s data revenue stood at 25 percent in the corresponding quarter of the previous year. The report shows a Ncell user consumed over 3,251 MB of mobile data per month against the figure of 3,684 MB of data in Q2, 2021.
Ncell’s slight fall in revenue has also been reflected in the telco’s ARPU (Average Revenue Per User). In Q2, 2022, Ncell generated Rs 199 against Rs 211 from Q2, 2021 both including prepaid and post services from the company.
Poor financial performance mainly due to the foreign exchange losses
Likewise, Ncell’s parent company Axiata Group reported a net loss of RM 106.38 million in Q2, 2022. The group lost earnings due to the foreign exchange losses “mainly contributed by mobile operations in Sri Lanka.”
The operator’s total revenue for the quarter stood at RM6.7 billion against RM6.39 billion in the same period in 2021.
A joint-acting chief executive officer (CEO) of Axiata Group, Vivek Sood said, “Forex impact and macro headwinds especially in Sri Lanka, Bangladesh, and Nepal had adversely impacted group earnings.”
As per NTA, Ncell is serving its customer base of 1 crore, 68 lakh, 16 thousand, and 985 people in Nepal. The company provides 2G, 3G, and 4G LTE mobile services. It has 70 lakh, 53 thousand, and 926 users on the 4G network, while 18 lakh, 8 thousand, 9 hundred, and 47 users are connected on its 3G mobile network.