Nepal Telecom (NT) earned net profits of Rs 3.93 billion in the first six months of the current fiscal year, which was 7.60 percent less compared to the same period of the last fiscal year.

According to the financial report of the NT, the state-owned telecommunication company faced a decline in its net profit by Rs 323.37 million in the review period. During mid-July and mid-January of the FY 2022/23, the company secured net profits of Rs 4.25 billion.

The reduction in NT’s profits has been attributed to a decline in the interconnection income by Rs 529.27 million with an increased usage of the OTT service. In addition, failing to carry out timely repairing of its distribution sites along with the disruption in electricity supply, increased cost with an expansion of its services in the remote areas, reduction in the service rates with revised government policies and reduction in the interest rates of banks, among others, have been identified as the factors behind the downfall in the profit earnings.

In the first half of FY 2023/24, the NT earned revenue of Rs 21.30 billion, down from Rs 22.10 billion in the same period last year. In the review period, the revenue amount declined 3.58 percent.