KATHMANDU, NOV 18 -
Nepal Telecom (NT) has posted a 0.61 percent fall in its net profit despite a double-digit growth in revenue in the first quarter (mid-July to mid-Oct) of the fiscal year.
The state-run company’s unaudited Q1 report states that it earned Rs 9.84 billion revenues over the review period — up 19.24 percent compared to Rs 8.25 billion a year ago. However, the net profit fell to Rs 3.63 billion from Rs 3.65 billion. The decline in NT’s profit has been attributed to the rise in expenditure in operation and maintenance, staff salary other administrative costs and royalty. NT spent Rs 1.67 billion on operation and maintenance with focus on improving service quality, the company said.
The expenditure is nearly 200 percent higher than last year’s Rs 569.77 million. For staff salary, the company spent Rs 1.14 billion (up 11.10 percent), and Rs 514.64 million was spent for administrative expenses (up 92.14 percent). It paid Rs 363.06 million in royalty to the government, against Rs 294.53 million in the same period last year.
A senior NT official said the company would ‘easily achieve’ its revenue target this year with the introduction of new projects such as 10 million GSM lines, IP-CDMA and WiMax broadband internet service. “Moreover, the target set this year is comparatively low due to stiff competition,” the official said.
For the current fiscal year, the company has targeted to earn Rs 36.81 billion revenues and has projected a net profit of Rs 12.54 billion. According to unaudited report, the company, in the last fiscal year, had posted Rs 35.45 billion revenues and net profit of Rs 13.70 billion. “We have put major emphasis on improving service quality and providing services at lower price,” the official said. As part of its programme to improve service, NT will add mobile towers and carry out radio frequency optimisation and tower optimization work under its GSM mobile and CDMA service network.
Despite a rise in subscriber base, gradual decline in market share, increased competition and declining tariff are some of the factors affecting NT’s profits. NT says the rapid development in telecommunication technology worldwide, illegal voice over internet protocol (VoIP) call bypass and failure to maintain good service quality are some of the challenges it faces.
In the current fiscal year, NT plans to start services based on new technologies such as IP-CDMA, EVDO, WiMax, NGN, 3G and 4G. The company recently launched WiMax wireless broadband data service in Kathmandu and is currently working on new mobile lines capable of providing 3G and 4G services under its 10 million GSM lines project within current fiscal year. With big projects like 10 million GSM mobile lines, IP CDMA and WiMax in its hand, the company has allocated Rs 62.36 billion for the current fiscal year. Of the total budget, Rs 15.11 billion will be spent for the implementation of big projects.
Source: The Kathmandu Post
Nepal Telecom (NT) has posted a 0.61 percent fall in its net profit despite a double-digit growth in revenue in the first quarter (mid-July to mid-Oct) of the fiscal year.
The state-run company’s unaudited Q1 report states that it earned Rs 9.84 billion revenues over the review period — up 19.24 percent compared to Rs 8.25 billion a year ago. However, the net profit fell to Rs 3.63 billion from Rs 3.65 billion. The decline in NT’s profit has been attributed to the rise in expenditure in operation and maintenance, staff salary other administrative costs and royalty. NT spent Rs 1.67 billion on operation and maintenance with focus on improving service quality, the company said.
The expenditure is nearly 200 percent higher than last year’s Rs 569.77 million. For staff salary, the company spent Rs 1.14 billion (up 11.10 percent), and Rs 514.64 million was spent for administrative expenses (up 92.14 percent). It paid Rs 363.06 million in royalty to the government, against Rs 294.53 million in the same period last year.
A senior NT official said the company would ‘easily achieve’ its revenue target this year with the introduction of new projects such as 10 million GSM lines, IP-CDMA and WiMax broadband internet service. “Moreover, the target set this year is comparatively low due to stiff competition,” the official said.
For the current fiscal year, the company has targeted to earn Rs 36.81 billion revenues and has projected a net profit of Rs 12.54 billion. According to unaudited report, the company, in the last fiscal year, had posted Rs 35.45 billion revenues and net profit of Rs 13.70 billion. “We have put major emphasis on improving service quality and providing services at lower price,” the official said. As part of its programme to improve service, NT will add mobile towers and carry out radio frequency optimisation and tower optimization work under its GSM mobile and CDMA service network.
Despite a rise in subscriber base, gradual decline in market share, increased competition and declining tariff are some of the factors affecting NT’s profits. NT says the rapid development in telecommunication technology worldwide, illegal voice over internet protocol (VoIP) call bypass and failure to maintain good service quality are some of the challenges it faces.
In the current fiscal year, NT plans to start services based on new technologies such as IP-CDMA, EVDO, WiMax, NGN, 3G and 4G. The company recently launched WiMax wireless broadband data service in Kathmandu and is currently working on new mobile lines capable of providing 3G and 4G services under its 10 million GSM lines project within current fiscal year. With big projects like 10 million GSM mobile lines, IP CDMA and WiMax in its hand, the company has allocated Rs 62.36 billion for the current fiscal year. Of the total budget, Rs 15.11 billion will be spent for the implementation of big projects.
Source: The Kathmandu Post
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