Net profit of state-owned telecom company - Nepal Telecom (NT) - has decreased during the first quarter of the current fiscal year 2023/24.

Net profit of NT has decreased by 8.9 per cent during the first quarter of the current fiscal year compared to the same period last fiscal year, according to a press statement of the NT.

The company has earned a net profit of Rs. 2.02 billion in the review period of the current fiscal year 2023/24 while it had earned a net profit of Rs. 2.22 billion in the first quarter of the last fiscal year 2022/23.

Meanwhile, the operating income of the company has decreased by 5.43 per cent during the review period.

The operating income of the NT stood at Rs. 8.58 billion during the first quarter of the current fiscal year while it was Rs. 9.07 billion during the same period a year ago.

The NT was able to collect revenue of Rs. 10.64 billion by providing service during the review period which is 3.54 per cent lower than the same period last year.

Total income of the NT was Rs. 11.04 billion during the first quarter of the last fiscal year 2022/23.

According to NT, income and net profit of the company has decreased due to the reduction in interconnection income caused by increase in the use of OTT services and the relative decrease in the use of the company’s services due to the economic recession.

The Company said that due to the adverse effects of the weather, power supply and maintenance work could not be done on time, so the sites could not be operated on time.

Due to increased usage of the OTT service, the interconnection income decreased by Rs. 491 million during the first quarter of the current fiscal year as compared to same period last fiscal year.

Owing to change in the rate of foreign exchange, there is a foreign exchange gain of around Rs. 59 million, the Company said.

The Company said that due to the change in bank interest rates, financial income has decreased by Rs. 148.1 million during the first quarter of the current fiscal year.

According to NT, it is continuously expanding the service and improving the quality of telecommunication services even in the difficult and remote places where the cost is high and the return is low, and the cost is also increasing.