Nepal Telecom (Ntc) records a profit of Rs 2.66 billion in FY 2081/82, which is a decline of Rs 3.56 billion as compared to last Fiscal year. As per the financial report published by the company, the net profit drops by 57.21%, which is quite an alarming situation for the company. The company has blamed OTT services and Wifi Mobility service for such sharp decline in the profit. In this post, we explore the Ntc’s profit, revenue, EBTIDA, and the reasons for its financial changes during the period.
| Ntc Financial report | FY 2080/81 (Last Year) | FY 2081/82 | Difference |
| Ntc operating income | 34,560,265,000 | 34,532,442,000 | -0.08% |
| Ntc total income | 42,116,910,000 | 38,733,341,000 | -8.03% |
| Net profit | 6,235,502,000 | 2,668,192,000 | -57.21% |
Check out: How to transfer balance in Ntc?
Table of contents
Ntc operating revenue FY 2081/82
In the 4th quarter of FY 2081/82, Nepal Telecom generated a total operating revenue of drew Rs 34 arba, 53 crore, 24 lakh, and 42 thousand. It was a drop by over 2 crore, 78 lakh, and 23 thousand or 0.08%. During the same period in FY 2080/81, the figure stood at Rs 34 arba, 56 crore, 2 lakh, and 65 thousand.
| Nepal Telecom Operating revenue | Value (Rs arba) |
| FY 2081/82 Q4 | 34.53 |
| FY 2080/81 Q4 | 34.56 |
| Change (%) | -0.08% |
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Ntc total revenue FY 2081/82
Nepal Telecom posted a total revenue of Rs 38 arba, 73 crore, 33 lakh, 41 thousand in the fourth quarter of FY 2081/82. During the same period in FY 2080/81, it generated Rs 42 arba, 11 crore, 69 lakh, and 10 thousand. So, there’s a significant drop in its revenue. To be exact, the revenue fell by 8.03% or Rs 3 arba, 38 crore, 35 lakh, and 9 thousand.
| Nepal Telecom Revenue | Value (Rs arba) |
| FY 2081/82 Q4 | 38.73 |
| FY 2080/81 Q4 | 42.11 |
| Change (%) | -8.03% |
Ntc Profit FY 2081/82
Nepal Telecom (NTC) earned a profit of Rs 2 arba, 66 crore, 81 lakh, and 92 thousand in the 4th quarter of FY 2081/82. It’s a stunning decline from Rs 6 arba, 23 crore, 55 lakh, and 2 thousand from the previous FY’s fourth quarter. To be exact, it’s a fall of Rs 3 arba, 56 crore, 73 lakh, and 9 thousand or a whopping 57.21%.
| Nepal Telecom Profit | Value (Rs arba) |
| FY 2081/82 Q4 | 2.66 |
| FY 2080/81 Q4 | 6.23 |
| Change (%) | -57.21% |
NT generated earning (EBTIDA) of Rs 19 arba, 25 crore, 91 thousand in 4th quarter of FY 2081/82. It’s an increase of Rs 1 arba, 22 crore, 91 lakh, and 46 thousand or 6.82% year-to-year from FY 2080/81 4th quarter. Previously, the company drew Rs 18 arba, 2 crore, 9 lakh, and 44 thousand.
Before taxes, the company’s profit was Rs 11 arba, 21 crore, 63 lakh, and 48 thousand. It’s a year-to-year decrease of Rs 3 crore, 43 lakh, and 2 thousand or 030%. Because the last time around, the profit before the taxes was Rs 11 arba, 25 crore, 6 lakh, and 51 thousand.
According to Nepal Telecom, its revenue per share (annualized) is Rs 14.82.
Nepal Telecom provides reasons for financial changes in 4th quarter FY 2081/82
Reasons for changes in financial conditions of Nepal Telecom in 4th quarter of FY 2081/82:
- Users’ heavy use of OTT reducing volume of incoming calls from abroad. It led to a decline of Rs 41 crore, 90 lakh, 70 thousand or 14%. OTT has overall made a negative impact on the company’s revenues from voice and SMS services.
- Submitting a total lump sum of Rs 20 billion for Nepal Telecom license. Also, it allocated Rs. 4.97 arba in 2081 and about Rs. 13.15 arba up to the third quarter of FY 2082 for the provision of pensions for employees. The interest income has decreased by about Rs. 3 arba, 7 crore, 11 lakh, and 42 thousand or 45.29 percent compared to the fourth quarter of the previous fiscal year due to the decrease in investment and the gradual decrease in interest rates.
- WiFi Mobility service provided by ISPs has decreased revenues from its mobile data packs. Check out: NTA warns ISPs to follow rules for WiFi Mobility, terms illegal
- Being a national telecom company, it has had to expand telecom services in remote regions that has less financial potential.
- Changes in service tariffs causing huge effects on revenues.
- Effect from deferred tax arising from the accounting of the contribution-based pension plan expense in accordance with Nepal Accounting Standards 19 and the additional allocation of Rs. 13.15 arba to Defined Benefit Assets in this fiscal year.
- Issues, including taxes shown in Contingent Liabilities until last year were resolved in this fiscal year. So, additional financial burden carried on for the company in FY 2081/82.
- The company has made additional provisions for expected credit losses on debt investments in this quarter. Similarly, additional provisions have been made for other assets in this quarter.
- The company has increased its employee pension provision as the estimated discount rate for calculating employee pension provisions in accordance with Nepal Accounting Standard 19 has decreased from 7.5% to 7% due to the current financial market conditions and the decline in expected returns.
The latest financial report aligns with the growing concern for the telco industry in Nepal The company has again scored a negative in its revenues and profits which again highlights a need for strategic changes to restore the industry’s fortunes.
Check out: Challenges of Telecom operators in Nepal
