Private internet service provider (ISP) Subisu Cablenet Limited saw its total revenue reach Rs 3.77 billion in FY 2021/22 despite stiff market competition. However, the Average Revenue Per User will remain “checked” due to the very competitive nature of the industry, Care Ratings Nepal reports.
Due to the positive financial indicators, Subisu has retained the Double B Plus rating for long-term and A 4 Plus rating for short-term bank facilities from Care Ratings.
Subisu’s 3.77 billion profit is an increase of 7% over FY 2020/21 in which, the company brought in Rs 3.51 billion. In 2019/20, the ISP only drew 2.90 billion in revenue.
| Subisu revenue FY 2021/22 | Subisu revenue FY 2020/21 | Subisu Revenue FY 2019/20 |
| Rs 3.77 billion | Rs 3.51 billion | Rs 2.90 billion |
During the Covid-19 outbreak, the work-from-home culture grew. This directly impacted Subisu as demand for its internet services improved, Care Ratings write. And despite financial woes affecting most industries, Subisu remains steady with its finances.
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Subisu drew its most earnings from retail customers
The rating agency says that Subisu’s positive revenue growth came mostly from increasing user base and income from the corporate segment. The company generated 57% of its total earnings in the first half of FY 2022/23. In FY 2021/22, the company generated 52% of its revenue from retail customers. The same transaction stood at 50% in FY 2020/21, and 53% in 2019/20.
Likewise, in 2021, the company generated 24% income from corporate customers. The 18% of earnings came through other projects such as government projects. In 2020, corporate subscribers contributed 27% of revenue for the Kathmandu-based ISP.
Care Ratings says that Subisu Cablenet Limited (SCL) went public on 2022 March 05.
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Subisu revenue is fine but ARPU is on “a declining trend”
But despite a fairly good revenue in FY 2021/22 Subisu couldn’t see that reflect on its Average Revenue Per User (ARPU) as it remained “rangebound”. In FY 2021-22, the company generated Rs 10,023-10,041 per year which reflected a declining trend from previous years. Care Ratings says it is due to the growingly competitive rates, promotional offers, and discounts in newer areas.
“Going forward, owing to the highly competitive nature of the industry, ARPU levels are likely to remain checked and consequently impact the company’s operating profitability,” Care Ratings adds.
The agency calls Subisu is one of the top 5 ISPs in Nepal in terms of subscribers with over 2.6 lakh users across the country. It enjoys a 10% market share in the industry. The rating agency says the ISP has a presence across 77 districts with 10 stations inside Kathmandu and 30 branches across Nepal.
