20th August 2022, Kathmandu
Worldlink Communications Limited, the country’s largest internet service provider company, has earned nearly seven billion rupees in nine months.
According to the report recently released by the rating agency ‘Care Ratings Nepal’, in the first nine months of the financial year 2021/2022, the company had a turnover of six billion 724 million rupees.
In this way, it is estimated that the turnover of the company during the remaining three months will be more than the previous year. A company with a turnover of 6 billion 645 million rupees in the previous year 2020, it is mentioned that the turnover is 7 billion 954 million rupees in 2021 which is an increase of 21.53 percent.
During this period, the customer base of the company also increased by 29.91 percent to five lakh ten thousand 712. The largest share of such business is for domestic customers. According to the report, in 2021, the company earned 41 percent of its total income from domestic customers, while seven percent of its income was from corporate customers.
In addition, it is also estimated that the turnover of the company will increase further in 2022. According to the report, Worldlink has managed to expand its services to 140 new locations in this financial year alone.
It is mentioned in the report that although the number of transactions has increased, the market share of the company is decreasing.
Worldlink’s market share, which was 37 percent in 2019, dropped to 34 percent in 2020.
In the first nine months of 2021/22, the market share seems to have further declined and was limited to 31 percent. Behind this, increasing competition between internet service providers and entry into the same business by large telecommunication companies is seen as the reason.
According to Care Ratings Nepal, Worldlink alone occupies 40 percent of the internet bandwidth across Nepal. In 2021, the company’s market share for fiber was 36 percent. This report states that the company is eligible for a bank loan of 5 billion 191.5 million rupees. Preparing to take a loan, the company has reconfirmed its position through Care Ratings.
The company has received an NPA rating for long-term loans of 2 billion 181.5 million rupees, while for short-term loans of 3 billion 10 million rupees, the company has received NPA two plus rating.