Nepal Telecom’s profit decreases by 7.6% in second quarter

By A Staff Reporter,Kathmandu, Feb. 14:The net profit of state-owned telecom company - Nepal Telecom (NT) - has decreased in the first six months of the current fiscal year 2023/24. Net profit of NT has decreased by 7.60 per cent during the second quarter of the current fiscal year compared to the same period last fiscal year, according to a press statement of the NT.

The company has earned a net profit of Rs. 3.93 billion in the review period of the current fiscal year 2023/24 while it had earned a net profit of Rs. 4.25 billion in the second quarter of the fiscal year 2022/23.

Meanwhile, the operating income of the company has decreased by 4.59 per cent during the review period. The operating income of the NT stood at Rs. 17.24 billion during the second quarter of the current fiscal year while it was Rs. 18.07 billion during the same period a year ago.

The NT was able to collect revenue of Rs. 21.30 billion by providing service during the review period which is 3.58 per cent lower than the same period last year. Total income of the NT was Rs. 22.10 billion during the second quarter of the last fiscal year 2022/23.

According to NT, the profit of the Company has been under pressure due to a decrease in the use of telecommunication services caused by the economic recession. The income and net profit of the company have decreased due to the decrease in interconnection income caused by the rising use of OTT services and the relative decrease in the use of the company's services due to the economic recession.

The Company said that due to the adverse effects of the weather, the power supply and maintenance work could not be done on time, so the sites could not be operated on time. Due to increased usage of the OTT service, the interconnection income decreased by Rs. 529 million during the second quarter of the current fiscal year as compared to the same period last fiscal year.

Owing to changes in the bank interest rates, the income also decreased by Rs. 347 million during the review period. The cost of NT has been increasing due to investment in improving quality services in remote areas, said the NT.