Nepal Telecom (NTC) witnessed a massive decline in its net profit in the last Fiscal Year (FY).

The unaudited report unveiled by the country’s telecommunication giant shows that the company’s net profit declined by 57.21 percent. In the FY 2024/25, the amount dropped to Rs 2.66 billion from more than Rs 6.23 billion in the previous FY. Likewise the company's earning per share has been limited to Rs 14.82.

As per the NTC’s financial statement of the fourth quarter of the last FY, the company's operating income remained fairly stable despite a decline in total revenue and net profit earnings. The company's total operating income reached Rs 34.53 billion, a slight decline of 0.08 percent from Rs 34.56 billion in the previous year. On the other hand, total revenue was limited to Rs 38.73 billion, a drop of 8.03 percent from Rs 42.11 billion.

According to the NTC’s report, the main reasons for the decline in revenue and net profit was due to a slump in revenue generation from international calls, increasing use of OTT services and a decline in mobile data due to competing ISPs' WiFi services. Likewise, the obligation to expand services to remote areas at high costs, policy change in to tariff rates, a decline in interest earning, increased expenses due to employees’ pension arrangements, the impact of deferred taxations, additional financial burden from tax-related litigation as well as loan loss provisions for the debt investments and assets.