Nepal Telecom posts Rs 5.55 billion net profit in the first half of fiscal year

Nepal Telecom posted a net profit Rs 5.55 billion in the first half of the current fiscal year 2013-14.

The profit is 0.66 per cent more compared to the same period a fiscal year ago.

The Nepse-listed company’s financial statement for the second quarter of the current fiscal year published today revealed that its total income stood at Rs 19.69 billion compared to the last fiscal year's second quarter, when it recorded an income of Rs 18.43 billion.

According to the telecom service provider, it has managed to record a growth despite cut-throat competition and increasing operating cost due to power outage.

The company has posted increment of 6.86 per cent in income to Rs 19.69 billion, whereas expenditure also increased to Rs 12.2 billion – due to payment for new projects like WiMax and additional 10 million GSM lines– of from Rs 10.81 billion last year.

The only profit making company under the others sub group in the Nepse has also reported that its expenses also increased in paying frequency fee, contribution to the Rural Telecommunication Development Fund, operation and maintenance, royalty and administrative cost, though the expenses for licence fee and interest on subscribers’ deposit decreased.

Nepal Telecom is planning to pay Rs 462 million for frequency fee in the current fiscal year, whereas its operation and maintenance cost increased to Rs 3.75 billion from last year’s 3.1 billion.