Nepal Telecom’s profit drop by 65 pc

Kathmandu: Nepal Telecom’s profit has dropped sharply in the first six months of the current fiscal year.

The total income from services has also come down. Nepal Telecom has stated that it has earned Rs 17.72 billion this year as against Rs 18.03 billion in the first six months of last year. This is 1.74 percent less than the previous income.

Net profit has reached Rs 1.77 billion in the second quarter this year while such profit was Rs 1.51 billion in the first quarter. Meanwhile, the net profit of the company was Rs 4.93 billion in the corresponding period of the previous year. This year’s profit is down about 65 percent from last year.

Telecom has said that the profit has decreased as it has provided data packages at lower prices. Despite the increase in data usage, the revenue has declined, the telco said.

The company claims that the unprecedented decline in international roaming services due to the travel ban has also reduced its profits. The growing use of Over the Top (OTT) has also weighed heavily on international interconnection services, the company said.

During the review period, the increase in the minimum wage for manpower from external sources, increase in maintenance costs, and changes in the foreign exchange rate affected the profit margin.