Nepal Telecom’s profit has decreased, there are reasons for the decline
Nepal Telecom’s profit has declined. As per the financial statement of the last fiscal year 2077/78 made public by the telco, the net profit of the company is Rs. 7.45 billion.
While in the fiscal year 2076/77, the net profit of the telco was 9.74 billion 89.56 million. The company’s gross profit has declined by more than Rs 2 billion.
In the Fiscal Year 2076/77, the total service income of the Telecom was 34.61 billion 99 thousand 64 thousand while in the Fiscal Year 2077/78 it was 35.90 billion 37.33 million.
These are the reasons given by Telecom for the decline in profits
K. The direct impact of the Covid 19 epidemic has led to a decline in global trade.
NS. The interest rate on term deposits and call deposits of banks and financial institutions has increased in the current Fiscal Year as compared to the previous year. Interest income declined as it declined.
G. As the company has provided data packages at very low prices for the convenience of the customers targeting the epidemic of Covid 19, the revenue has not increased as expected despite the increase in data consumption as compared to the previous year.
NS. The Covid 19 epidemic and restrictions on international travel have led to an unprecedented decline in international roaming services, and the increasing use of OTT has led to a sharp decline in international interconnection services.
. During the review period, the increase in the minimum wage of manpower from external sources, the increase in maintenance costs, the change in the foreign exchange rate and the introduction of new technologies such as Forge / FTTH have led to an increase in depreciation.