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  Nepal Telecom’s profit down by 33 percent

Kathmandu: Nepal Telecom (NT) has made a profit of Rs 3.28 billion in the first half of the current fiscal year. This is a decline of 33.46 percent in its profit as compared to the same period in the last fiscal year.

The financial reports of NT shows that the state-owned telecom giant has been facing increasing challenges to maintain its revenue and profits in the recent years. This is attributed largely to its customers switching to other telecom companies and an increasing use of internet and over-the-top (OTT) apps. These platforms are user-friendly and more cost-effective as compared to the traditional broadcast, cables and satellite platforms.

After the COVID-19 pandemic hit the country, there is a growing popularity of the online system including the OTT apps. As a result, the NT’s profit amount during mid-July and mid-January this year declined by Rs 1.65 billion during the review period, according to the NT officials.

As per the NT’s financial reports, the state-owned company witnessed a 12.3 percent decline in the annual net profit to Rs 8.56 billion in 2019/20. In the fiscal year 2018/19 too, the net profit of the company had plunged to Rs 10.20 billion from Rs 17.48 billion in the fiscal year 2017/18.

[Feb 14, 2021 / nagariknetwork.com]   
 
 
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