Government-backed telecom operator Nepal Telecom (Ntc) generated over Rs 11 billion in revenue in the first quarter of the Fiscal Year (FY) 079/80. The company meanwhile saw its total operating revenue and profit decrease compared to the same period from the last FY.
Ntc has released its financial report for the first quarter (till the end of Ashoj 2079) of the current FY 079/80. As per the latest report, the telco has generated a total revenue of Rs 11 billion, 4 crore, and 90 thousand. It is a year-to-year increase of Rs 8 crore, 77 lakhs, 43 thousand (0.80%). In the same period (till the end of Ashoj, 2078) the company registered Rs 10 billion, 95 crores, 23 lakh, and 46 thousand in revenue.
Ntc total revenue Q1 FY 079/80
Ntc total revenue Q1 FY 078/79
Meanwhile, Ntc saw its total operating revenue decrease in the same first quarter of FY 079/80. The report shows that the telco’s operating revenue stood at Rs 9 billion, 7 crores, 75 lakh, and 85 thousand in the first three months of the current FY. It’s a decrease of Rs 69 crore, 77 lakh, and 9 thousand (7.14%) from the same period of the previous FY 078/79. Till the end of Ashoj, 2078, the operating revenue of Ntc was recorded at Rs 9 billion, 77 crores, 52 lakh, and 94 thousand.
Ntc sees profit slightly decline in first quarter FY 079/80
Likewise, the telco’s profit also decreased in these first three months. The company generated Rs 2 billion, 22 crores, 55 lakh, and 7 thousand in profit. It’s a decrease for the company from the last FY’s three months report. In Q1, FY 078/79, the company registered profits of Rs 2 billion, 25 crores, 99 lakh, and 4 thousand. This term around, the total decreased by a marginal Rs 3 crore, 43 lakhs, 80 thousand (1.52%).
Reasons for the decrease in Ntc profit in Q1, 079/80
Increase in the total operating revenue:
Increase in data subscription driving the revenue of Rs 11 crore, 40 lakhs in GSM Mobile data (2G/3G/4G).
Decrease in operating revenue:
Ntc sees lower tariffs in domestic interconnection as per the interconnection guidelines being a reason for the decline in its profits. Likewise, the incremental growth of OTT services resulted in a revenue decline of Rs 10 crore. Again, the use of OTT has impacted the company’s earnings in Voice services.
Sites not coming into operation due to electricity outages and delay in repairing because of adverse weather.
Changes in the telecom charges as per the Financial Act, of 2079, impacted the company’s total revenue.
The economic impact of Covid-19 also affected the purchasing power of the customers.