WorldLink revenue crosses Rs 12 billion, Foreign investment reaches Rs 4.37 billion

KATHMANDU: Nepal’s leading internet service provider, WorldLink Communications, reported operating revenue of Rs 12.13 billion in fiscal year 2024/25 (FY 2081/82), marking a 9 percent increase from Rs 11.13 billion recorded in the previous fiscal year.

The strong revenue growth comes amid continued expansion of broadband services, increased customer acquisition, and improved operational efficiency, reinforcing WorldLink’s position as Nepal’s largest internet service provider in a highly competitive telecommunications market.

According to the company, around 51 percent of total revenue was generated from internet service subscriptions, while 43 percent came from monitoring and technical support services. The remaining six percent was contributed by network service provider (NSP) services, equipment sales, and other business activities.

Profitability Improves Despite Competitive Market

WorldLink’s operating profitability strengthened during the year as bandwidth expenses remained relatively stable and operating costs, particularly employee-related expenditures, were effectively controlled through efficiency improvements.

As a result, the company’s operating profit margin increased to 32.61 percent, up from 31.45 percent a year earlier.

The improvement significantly boosted gross cash accruals, which surged to Rs 3.01 billion, compared to Rs 940 million in the previous fiscal year.

The company’s earnings profile highlights the growing maturity of Nepal’s broadband sector, where operational efficiency and scale are becoming increasingly important factors in maintaining profitability amid pricing pressure.

Retail Internet Remains Core Business

Retail internet subscribers continued to be the company’s primary revenue source, accounting for approximately 42 percent of total revenue, while business and enterprise customers contributed around 9 percent.

In addition to broadband connectivity, WorldLink has diversified its income streams through technical support services, data connectivity solutions, network services, and other digital offerings.

For the first nine months of the current fiscal year 2025/26 (FY 2082/83), the company reported revenue of Rs 9.56 billion, indicating continued growth momentum.

Revenue More Than Doubles in Seven Years

WorldLink’s financial growth trajectory reflects the rapid digitalization of Nepal and rising demand for high-speed internet connectivity.

The company reported revenue of:

• Rs 10.33 billion in FY 2079/80
• Rs 9.39 billion in FY 2078/79
• Rs 7.95 billion in FY 2077/78
• Rs 6.55 billion in FY 2076/77
• Rs 5.04 billion in FY 2075/76
• Rs 4.12 billion in FY 2074/75

Founded in January 1996, WorldLink has grown from a small internet provider into Nepal’s largest broadband company, serving customers across the country under the “WorldLink” brand.

The company is led by founder and Managing Director Dilip Agrawal, while Executive Director Manoj Kumar Agrawal and Director Laxman Kumar Yadav have remained associated with the company since its early years.

Market Leader with 32 Percent Share

According to the latest report from the Nepal Telecommunications Authority, WorldLink continues to dominate Nepal’s ISP sector with approximately 32 percent market share.

The company expanded its subscriber base from around 1.01 million customers to 1.08 million customers within nine months of the current fiscal year.

Customer growth reached 10.23 percent during the last fiscal year, slightly below the industry’s average growth rate of 11.11 percent. However, WorldLink captured nearly 30 percent of all new broadband subscribers added nationwide, gaining more than 94,000 new customers and reinforcing its leadership position.

Foreign Investment Reaches Rs 4.37 Billion

WorldLink has also attracted significant international investment as global development finance institutions and impact investors continue to see growth potential in Nepal’s digital infrastructure sector.

The company disclosed that it received:

• Rs 1.08 billion Series B investment from British International Investment in January 2023;
• Rs 900 million investment from Dolma Impact Fund in March 2023; and
• Rs 1.395 billion additional investment from Finnfund in February 2026.

Following these investments, the company’s cumulative foreign direct investment (FDI) has reached approximately Rs 4.37 billion.

The company said the investments are primarily being used to expand broadband infrastructure and strengthen network coverage across Nepal.

Technology Leadership

WorldLink has played a pioneering role in Nepal’s telecommunications and internet sector.

The company was among the first private firms to introduce satellite-based internet services and operate its own wireless trunk network. In 2012, it publicly launched Fiber-to-the-Home (FTTH) services after extensive research and network development.

In 2018, WorldLink partnered with Nokia to expand FTTH infrastructure with the objective of reaching around one million Nepali households.

More recently, the company upgraded its network to XGS-PON technology, enabling higher-speed broadband services and enhanced network performance. It has also deployed Nokia Wi-Fi Beacon routers equipped with advanced network insight capabilities designed to improve in-home connectivity and customer experience.

ARPU Under Pressure

Despite strong customer growth, the company continues to face pressure on Average Revenue Per User (ARPU), a key performance indicator in the telecommunications sector.

ARPU declined from Rs 927 to Rs 849 during the previous fiscal year due to intense competition and pricing pressure. However, the trend has shown signs of stabilization, with ARPU recovering to Rs 859 during the first six months of the current fiscal year.

Key Challenges Ahead

The broadband industry remains highly capital-intensive, requiring substantial investments in network infrastructure, particularly in underserved rural areas.

WorldLink currently carries total borrowings of Rs 2.76 billion, including Rs 1.01 billion in long-term loans and Rs 1.75 billion in short-term financing.

The company identified several challenges facing Nepal’s internet sector, including:

• Intense price competition among ISPs;
• Expansion of telecom operators into broadband services;
• Pressure on revenue per customer;
• Foreign exchange risks due to dependence on imported equipment;
• Regulatory and taxation uncertainties; and
• Infrastructure-related disputes and fees.

WorldLink reported foreign exchange losses of approximately Rs 110 million during the last fiscal year as equipment imports increased while revenues remained entirely domestic.

The company also noted that unresolved infrastructure-related issues, including fee disputes with the Nepal Electricity Authority, continue to pose operational and financial challenges.