Nepal Telecom faces profit dip of 7.60% in H1 FY 2023-24

KATHMANDU: Nepal Telecom (NT), the state-owned telecommunication company, reported a net profit of Rs 3.93 billion in the first six months of the current fiscal year, marking a 7.60 percent decrease compared to the corresponding period in the last fiscal year.

The financial report of NT revealed a decline of Rs 323.37 million in net profit between mid-July and mid-January of FY 2022/23, where the company had secured net profits of Rs 4.25 billion.

Several factors contributed to the reduction in NT’s profits. A notable decline of Rs 529.27 million in interconnection income resulted from increased usage of Over-The-Top (OTT) services.

Other factors include the company’s failure to conduct timely repairs on its distribution sites, interruptions in electricity supply, elevated costs associated with expanding services in remote areas, reduced service rates due to revised government policies, and a decrease in bank interest rates.

In the first half of FY 2023/24, NT’s revenue amounted to Rs 21.30 billion, reflecting a 3.58 percent decline from Rs 22.10 billion in the same period last year. The overall decrease in revenue is attributed to the aforementioned challenges and market dynamics.

NT is actively working to address these challenges and enhance its operational efficiency. As the telecommunications landscape evolves, the company aims to adapt and overcome obstacles to ensure sustained growth in the competitive market.