Key Takeaways:
- Revenue Decrease: Nepal Telecom’s total revenue for the first quarter of FY 2024/25 declined by nearly 6% compared to the same period last year.
- Operating Income Growth: Despite the revenue decline, the company’s operating income increased by 1.11%.
- Profit Decline: Net profit for the first quarter decreased by 14.20% year-over-year.
Kathmandu, Nepal – Nepal Telecom (NT) has reported a decline in total revenue for the first quarter of the current fiscal year (FY) 2024/25. The company’s financial report reveals that total revenue stood at Rs 10.6 billion, a decrease of 5.49% compared to the same period last year.
Despite this revenue decline, NT reported an increase in operating income, which reached Rs 8.68 billion, representing a 1.11% growth year-over-year. However, the company’s net profit for the first quarter decreased by 14.20% to Rs 1.74 billion.
“According to the financial report published by the Telecom, the net profit for the first quarter of the current fiscal year is Rs 1.74 billion. This amount represents a decrease of Rs 287.84 million, or 14.20 percent, compared to the net profit of Rs 2.27 billion during the same period of the previous fiscal year,” stated the report, highlighting the decline in profitability.
The report also indicates that profit before tax increased by 6.42% to Rs 3.56 billion. This suggests that while the company’s operating performance improved, factors such as increased taxation or other expenses may have contributed to the decline in net profit.
Nepal Telecom’s financial results for the first quarter of FY 2024/25 present a mixed picture. While the company achieved growth in operating income, the decline in total revenue and net profit raises concerns. It will be crucial for NT to analyze the underlying factors contributing to these trends and implement strategies to address them in the coming quarters.
