KATHMANDU, Feb 12: Nepal Telecom (NTC) witnessed a 12.98 percent decline in its net profit in the first six months of the current Fiscal Year (FY), largely due to the expansion of its service in rural areas.
According to the financial report unveiled by the NTC, it earned a net profit of Rs 4.16 billion during mid-July 2025 and mid-January 2026. The state-owned telecommunication company had earned a profit of Rs 4.78 billion in the same period last year.
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Although the NTC had its operating income increased by 1.73 percent, a decline in total revenue by 1.5 percent, caused the company to face a loss in its net profit. During the review period, the company’s operating income increased by Rs 294.80 million to Rs 17.29 billion. On the other hand, its total revenue declined by around Rs 292.69 million to Rs 19.22 billion.
According to the NTC’s report, the main reasons for the decline in revenue and net profit was due to a slump in revenue generation from international calls, increasing use of OTT services and a decline in mobile data due to competing ISPs' WiFi services. Likewise, the obligation to expand services to remote areas at high costs, a decline in interest earnings, policy change in tariff rates, additional financial burden from tax-related litigation and increased official expenses also led to a decline in the net profit earnings of the state-owned company.
