Private operator Ncell Axiata’s revenue declines in the first quarter of Q1 2023. According to the latest financial report by the telco’s parent company Axiata Group Berhad, the company saw its overall revenue fall by 9.5% in the first three months of the year while data contributed 32% to its overall earning with per month data consumption growing further.
Axiata reports that Ncell drew Rs 9 billion, 18 crore, and 20 lakhs in Q1 2023. During the same duration in 2022, the figure stood at Rs 9 billion, 61 crore, and 30 lakhs. The data contribution to the earning fell by 1% during the same period.
|Ncell revenue Q1 2023||Ncell revenue Q1 2022||Difference|
|Rs 9,18,20,00,000||Rs 9,61,30,00,000||Rs 431,000,000 (9.5%↓)|
Ncell has outlined key reasons for the low financial return. It attributes the slow growth insufficient data growth, and the voice segment which is impacted by lower interconnection rate and minutes of usage (MoU). The low core also impacted its annual revenue felling by 5.4%. In the meantime, the company’s international long-distance call (ILD) increased revenue by 7% albeit had no positive effect on the finances for the first quarter.
Likewise, with high employee and network expenditures, EBIT (Earnings Before Interest and Taxes) had decreased by 18.1%. As a result, PATAMI (Profit after Tax and Minority Interest) fell by 16.7%. The company saw its direct expenses come down to 5.1% which was 5.5% from the same duration in FY 2022. The total operating expense was recorded at 44.8% against the total revenue.
EBITDA drops slightly
Similarly, the operator’s EBITDA declined to Rs 5 billion 6 crores, 60 lakh with a margin standing 55.2% from Rs 5 billion, 49 crore for the same duration last fiscal year with a margin of 56.6%.
|Ncell EBITDA and margin FY 2023 Q1||Ncell EBITDA and margin FY 2022 Q1||Difference|
|Rs 5,066,000,000 / 55.2%||Rs 5,490,000,000 / 56.6%||Rs 424,000,000↓ / 1.4% ↓|
Ncell revenue Q1 2023 sees mixed ARPU
At the same time, the company’s ARPU (average revenue per user) has shown mixed results. According to the data, postpaid ARPU reflected an improving trajectory with the company earning Rs 259 during the three-month period. Prepaid service ARPU however fell to Rs 173. The telco generated Rs 244 and Rs 178 from its postpaid and prepaid service respectively the previous quarter.
Earning from mobile data
The telco earned 32% of its revenues from mobile data. The report shows that the telco managed its data traffic of 115 million GB during the first three months of FY 2023. Each user consumed an average of 4,150 MB of Ncell data per month. As per the telco, 72.40% of its users are connected to smartphones. Of the total, the telco operates 3,237 3G base stations and 4,043 4G stations.
|Ncell data usage FY 2023 Q1||Ncell data usage FY 2022 Q1|
|3,185 MB||3,185 MB|
Ncell is a leading telecom operator in Nepal with a 36.74% market share in Nepal. The telco provides voice and 3G and 4G mobile broadband data among its services while also seeking approval for its 5G trial.
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