Nepal Telecom has recorded a massive growth in its profits, earning a pre-tax profit of Rs 4 Arba 20 Crore in the fourth quarter alone.
Nepal Telecom has seen a massive jump in its profits. The company made a pre-tax profit of Rs 4 Arba 20 Crore 24 Lakh 52 Thousand in the fourth quarter of the fiscal year 2082/83 alone.
In the same quarter of the previous fiscal year, the pre-tax profit of the company was only Rs 1 Arba 22 Crore 48 Lakh 4 Thousand. This means the profit increased by Rs 1 Arba 5 Crore 44 Lakh 34 Thousand compared to the third quarter of the current fiscal year, which was at Rs 3 Arba 14 Crore 80 Lakh 18 Thousand.
The annual net profit of the company also grew nicely. By the end of the fourth quarter of last fiscal year, the telecom earned Rs 8 Arba 86 Crore 46 Lakh net profit. This is Rs 2 Arba 85 Crore 79 Lakh or 47.58 percent more than the previous fiscal year profit of Rs 6 Arba 67 Lakh.
Data Consumption Growth Helps Income
According to Nepal Telecom, the revenue got better because of the rising use of Fiber to the Home (FTTH) and GSM data. The company also said that their profit went up because they reduced operating costs and cut down spending on things like advertisements and sponsorships.
The telecom mentioned that they saved around Rs 10 Crore to Rs 15 Crore just by cutting down advertisement and sponsorship costs in the last fiscal year. Also, their service operation, maintenance, and regulatory fees to the government was less than last year.
Operating Income Reaches Rs 34 Arba 95 Crore
In the last fiscal year, the total operating income of Telecom reached Rs 34 Arba 95 Crore 4 Lakh. In the previous fiscal year, this income was Rs 33 Arba 89 Crore 45 Lakh.
Similarly, the total income reached Rs 39 Arba 19 Crore 96 Lakh. This is an increase of Rs 1 Arba 1 Crore 15 Lakh, which is 2.65 percent higher than the previous year total income of Rs 38 Arba 18 Crore 81 Lakh.
The annual profit before tax reached Rs 13 Arba 26 Crore 47 Lakh. This is Rs 3 Arba 41 Crore 45 Lakh, or 34.66 percent higher than previous fiscal year’s profit of Rs 9 Arba 85 Crore 2 Lakh.
Also, the earnings before interest, tax, depreciation, and amortization (EBITDA) reached Rs 20 Arba 48 Crore 1 Lakh. The company’s annualized earnings per share (EPS) stands at Rs 49.25.
Profit Rises Despite Drop in Interest Income
Because the interest rates went down, Nepal Telecom’s interest income decreased by Rs 86 Crore 19 Lakh or 22.88 percent compared to previous fiscal year.
However, the main telecom service income went up, which had a positive impact on total operating income and profit. Specially, the revenue from GSM services increased by Rs 64 Crore 54 Lakh or 2.28 percent.
Government Efforts to Improve Services
Lately, different efforts are being made to improve the services of Nepal Telecom. The rule of automatic balance deduction after data package gets over has been stopped, and they are moving services online and starting ‘One Time KYC’.
Under the ‘Pay-as-you-go’ system, customers can now choose to let the balance deduct or buy a new package when their data ends.
Services like getting E-SIM, managing complaints, getting back lost SIM cards, and transferring ownership are now done online. They have also set up ‘Single Window Service’ help desks in offices to give easy service to customers.
In addition, some policy steps like giving extra frequency have been taken to make 4G coverage and quality much better.
AI Disclaimer: This article was originally published on https://bajarkochirfar.com. It has been translated with the help of AI. For the best understanding and accurate facts, we recommend reading the original Nepali version.
