Nepal Telecom’s Net Profit Drops by Rs 41.5 Crore, OTT Services Cause Rs 11 Crore Loss

Kathmandu: Nepal Telecom’s net profit has decreased by 23.82 percent. According to the company’s unaudited financial report for the first quarter of the current fiscal year 2082/83, made public on Monday, Telecom’s profit has fallen by Rs 414.4 million.

The company earned Rs 1.32 billion in profit in the first quarter of this fiscal year. In the same period of the previous fiscal year 2081/82, Telecom’s net profit was Rs 1.73 billion. The company’s annual earnings per share stand at Rs 29.45.

Telecom generated a total income of Rs 9.47 billion in the first quarter. Along with profit, total income has also declined by 5.89 percent. During the same period last fiscal year, total income was Rs 10.06 billion.

Total operating income has also slightly decreased. Telecom’s operating income for the first quarter is Rs 8.67 billion, down by Rs 671,000 compared to Rs 8.68 billion in the same period last fiscal year.

Telecom stated that the volume of incoming international calls has decreased further due to the widespread use of over-the-top (OTT) services. As a result, interconnection income has dropped by about Rs 109.7 million compared to the first quarter of fiscal year 2081/82, a decline of 17.29 percent.

Interest income has also fallen due to excess liquidity in banks, which has lowered interest rates. As a result, interest earnings from fixed deposits have decreased by 49 percent. The company said its interest income fell by Rs 500 million.

Employee insurance expenses under employee benefits increased by Rs 19.5 million. Telecom also stated that retirement-related expenses rose by Rs 165 million due to a change in the discount rate used to calculate liabilities for the defined contribution pension plan under Nepal Accounting Standard 19, from 7.5 percent to 7 percent. Because of this, total employee expenses increased by Rs 88 million.

 

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