Nepal Telecom reports 12.3% drop in annual net profit

18 Aug 2020

State-owned telecoms provider Nepal Telecom (NT) has published its unaudited financial results for the fourth quarter of fiscal year 2076/2077 (2019/2020) ended 15 July 2020, reporting a 19% year-on-year drop in quarterly revenue and a 12.3% decline in full-year net profit to NPR8.56 billion (USD70.7 million), largely due to the impact of the COVID-19 pandemic and the growing popularity of OTT apps. Total revenue for the year fell to NPR41.49 billion, down 5.3% from NPR43.83 billion in FY 2018/2019, while EBITDA was 7.6% lower at NPR19.18 billion, which the company attributed to a series of issues, including the mass return of foreign migrant workers, a halt to international tourism, a government-mandated 30% discount on mobile and fixed internet data pricing during the country’s three-month coronavirus lockdown, as well as increased infrastructure investment. With demand for data services growing faster than voice, NT expects the expansion of its LTE, FTTH and VAS to boost revenues in the coming year.

Nepal, Nepal Telecom (NT)