May 29, 2024

Nepal Telecom's profit decreased by Rs 323.3 million

Nepal Telecom's profit decreased by Rs 323.3 million

KATHMANDU:Nepal Telecom's net profit decreased by Rs 32 crore 33 lakh. On Tuesday, the company published its financial statement for the second quarter of the current fiscal year, revealing that its profit fell 7.6 percent compared to the same period last year. In the same period previous year (Poush 2079), the company's profit was 4 billion 25 million rupees.

Similarly, the company's income has reduced by approximately Rs 80 crore (3.58 percent). It stated that it had made 21 billion 30 million rupees until Poush 2080. Telecom's revenue for the same period previous year was 22.10 billion rupees. The company's total operational income during the second quarter of the current year is 17 billion 24 million rupees. Operating income fell by 4.59% compared to the same quarter last year. During the same quarter last year, the company's operating income was 18.7 billion rupees.

In the second quarter of the current year, the company's earnings per share were Rs 43.68.

According to Telecom, the rising use of over-the-top (OTT) applications such as Messenger, WhatsApp, and Viber has impacted interconnection revenue. The financial statement states that inter-affiliation income declined by 529.2 million rupees compared to the second quarter of last year.

Similarly, Telecom argues that income has been impacted by the unfavorable impacts of the weather, which caused power supplies and maintenance work to be delayed and the facility to be unable to operate on time. Telecom stated that expenses are rising as a result of efforts to expand services and enhance quality, even in tough and isolated places with high costs and low returns.

Nepal Telecom has said that the change in policy and norms governing service pricing calculation has had a negative impact on revenue. Similarly, changes in bank interest rates are expected to reduce financial income by around $347 million.