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.

Internet base slips to 7.59 million

The internet subscriber base in the country has slipped to 7.59 million in mid-December from 7.66 million a month earlier, according to the Nepal Telecommunications Authority (NTA).

The internet penetration rate has also dropped slightly to 28.63 per cent, it said, adding that Ncell has 3.58 million mobile internet (GPRS, Edge, WCDMA) users, up from 3.80 million in mid-November and UTL's EV-DO mobile internet base stood at 99,265, unchanged from a month earlier.
Likewise, Nepal Telecom's total internet base stood at 3.68 million, the same as in November. NT's dial-up base fell to 4,756 from 4,765 but its ADSL base was up at 121,279 versus 106,970 in November.

Nepal Telecom also served 3.54 million mobile internet subscribers, up from 3.43 million, and 136,573 EV-DO subscribers, the same as reported a month ago. The company further reported 6,049 customers for its new Wimax service, up from 5,382 a month earlier. Other ISPs served 97,691 internet customers through dial-up (10,197), wireless and fibre (63,040) and cable modem (24,454). Other ISPs connected 89,216 internet subscribers last month.

Nepal Telecom’s net profit drops, revenue grows, plans expansion

Though Nepal Telecom’s (NT) has posted its operating profit to Rs 37.60 billion, the Nepse listed company has recorded decline in its net profit by Rs 1 billion to 11.20 billion in the last fiscal year 2012-13 due to mandatory payment of the licence renewal fee to Nepal Telecom Authority (NTA).

Nepal Telecom has to pay Rs 20 billion in installment to the NTA whereas it has paid Rs 2.5 billion as the first installment renewal fee in January, according to the telecom service provider’s spokesperson Gun Keshari Pradhan.

Nepal Telecom has contributed Rs 20.37 billion – Rs 6.58 billion dividend, Rs 4.14 billion including VAT, Rs 4 billion income tax, Rs 1.98 billion in royalty and Rural Telecommunication Fund, Rs 2.31 billion in GSM renewal fee and Rs 1.33 billion in frequency fee – to the the government coffer in the fiscal year 2012-13, she said, adding that it has also projected to contribute Rs 21.35 billion to the government coffer in the current fiscal year. “The company has projected Rs 41.65 billion operating profit with some Rs 15.95 billion more investment in the current fiscal year."
Nepal Telecom plans to distribute 2.9 million additional lines, including two million GSM lines and aims at expanding CDMA coverage to all the 75 districts in the country, in the current fiscal year 2013-14, Pradhan added. “The NT also plans to launch integrated billing system and revamp its customer service system too by the end of the current fiscal year.”

Estimating a budget of Rs 69.95 billion for the current fiscal year, the NT aims at installing 500 Wi-Fi hotspots in different parts of the country.

As the competition is increasing in the telecom sector with the aggressive expansion of Ncell and other telecom service providers, the Nepal Telecom is also forced to expand and upgrade its service and quality.

NT’s market share stands at 46 per cent as its total subscriber base has touched 8.96 million as of mid-June 2013, according to the the latest Management Information System (MIS) report published by the Nepal Telecom Authority (NTA). “NT added 1.15 million new data users to 3.1 million and its market share in the data segment has increased by five percentage points in a one year from mid-June 2012 to mid-June 2013, due to mainly by the growth in the number of GPRS, WiMax and ADSL services users,” the report added. “The number of NT’s subscribers reached 8.96 million.”

The NT has listed 150 million-unit shares at the Nepse, where it’s per unit share has been traded at around Rs 550. Last fiscal year, the company had distributed 48 per cent cash dividend to its shareholders from the profit of the fiscal year 2011-12.

Nepal Telecom to provide WiMAX facility to public

Nepal Telecom (NT) will provide its much-awaited Worldwide Interoperability for Microwave Access (WiMAX) services to the public from March 27. Currently, the WiMAX service is available only to corporate consumers in 49 districts.

NT had launched the 4G WiMAX IEEE 802.16e service — first time in Nepal — offering WiMAX broadband internet service with greater flexibility at an unmatched price offer.

The telecom service provider — as a market leader in wireless internet — has promised to enhance its service, coverage and quality by delivering next generation technology to subscribers. "We will deliver high quality data and internet services and utilise the technology to encourage social and economic growth," said Nepal Telecom that is listed at Nepal Stock Exchange (Nepse). 

WiMAX enables broadband wireless anytime, anywhere, using any WiMAX enabled device, whether it is a laptop, desktop modem, digital phone or even a game device. Mobile WiMAX creates a seamless broadband environment at home, in the office, and while on the move.

Telecom operators have started shifting their focus to data from the voice market also due to the proliferation of affordable smartphones and tablets and high revenues lately.

Mobile applications like WhatsApp, Google Voice, Viber, Skype and Facebook Chat, that have become more popular recently are posing a threat to telecom operators, forcing them to bring the latest technology.

The number of internet service users currently stands at 5.52 million and of the total, some 5.12 million browse the internet on their mobile phones, according to Nepal Telecommunications Authority.