Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal Telecom (NT), the state-owned telecommunications giant, has reported a significant 48.67% drop in net profit for the third quarter of the fiscal year 2081/82. The company’s unaudited financial statement, released on Sunday, revealed that net profit fell to Rs. 2.84 billion from Rs. 5.53 billion in the same period last year.
According to the financial report, NT’s total revenue for the quarter decreased by 8.89%, amounting to Rs. 30.24 billion, down from Rs. 33.19 billion in the corresponding quarter of the previous fiscal year.
The decline in revenue has been attributed to increased competition from private operators like Ncell and the growing popularity of over-the-top (OTT) platforms such as WhatsApp, Viber, and Wi-Fi services, which have reduced demand for traditional voice and SMS services.
Despite the profit slump, NTC managed to reduce its operating and maintenance expenses by 12.98%, bringing them down to Rs. 6.64 billion. However, the company’s earnings per share (EPS) also took a hit, dropping to Rs. 15.78 from Rs. 30.72 in the same period last year. The net worth per share was reported at Rs. 517.62.
Industry analysts point to structural challenges in Nepal’s telecom market, including a congested landscape with 138 internet service providers and shifting consumer preferences toward data-driven services. Posts on X reflect public sentiment, with users citing the rise of OTT platforms and Wi-Fi as key factors eroding NTC’s market share. One user noted, “Nepal Telecom’s profits are down nearly 49% as customers shift to rivals and free apps like WhatsApp dominate communication.”
Nepal Telecom, which holds a 48.9% share of internet subscribers in Nepal, faces mounting pressure to innovate and adapt to the evolving digital landscape. The company is reportedly preparing to phase out 3G services starting in 2025 to focus on expanding 4G and potentially 5G networks, a move that could help regain competitive ground.
As Nepal’s largest telecom provider, NTC’s performance is closely watched, with its market leadership and infrastructure critical to the country’s connectivity. The company’s ability to navigate these challenges will be pivotal in sustaining its dominance in an increasingly competitive sector.
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