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OPERATING COMPANIES BUSINESS REVIEW
Axiata Group Berhad | Annual Report 2016
045
Key Highlights
• Subscriber growth of 14.4% to 14.9
million
• 2016 net addition of 1.8 million
• Data subscriber growth of 22% to
6.02 million
• Rebranded as “Ncell, an Axiata
company” in August 2016
• Successfully completed integration
into the Group in April 2016
About Ncell
Ncell Private Limited has been in operations
in Nepal since 2004 as the first private mobile
service provider in the country. The Company
is committed to being the best local mobile
providing international quality services with a
local touch. Most of the employees of Ncell are
Nepali and its services are designed to meet the
needs of local society.
Ncell is constantly working towards its goals
of connecting everyone in Nepal through its
network, providing high quality, modern and
cost effective services, and creating value for its
customers and partners.
Contributing to the development of the
country’s economy and infrastructure, Ncell
builds best-in-class networks and brings
communication services to people living in the
most remote areas of Nepal.
Business Review 2016
In 2016, Ncell maintained its leading position in
the Nepalese mobile market. The Company’s
subscriber base grew by 14.4% Year on Year
(YoY) to reach 14.9 million subscribers.
Data revenue contributed 16% of total revenue
during the year, representing data revenue
growth of 70.3% YoY, driven by 116.2% growth
in data volume.
Ncell’s 3G population coverage increased
compared to the previous year, reaching 29.6%
as at end of December 2016.
One of the Company’s top priorities within the
telecommunications service industry is its focus
on enhancing customer experience. Reflecting
its sustained efforts in this area, Ncell achieved
the highest Net Promotor Score (NPS) score in
Nepal in 2016 in comparison to its competitors.
Throughout the year, the Company continued to
provide quality services at affordable rates with
attractive voice and data services. Among the
new products and services launched were Day
Voice Pack and Day Data Pack, Every Customer
is a Winner and Dobbar Paisa Back which
garnered positive results from customers as well
as increased its competitive strengths within the
Nepalese telco industry.
Innovative new services were launched in 2016,
which included the Mobile TV Pack application
enabling customers to watch live TV on mobile
devices at an affordable rate. The Video on
Demand (VOD) service, the first to be launched
in the Nepal market, marks a key milestone for
Ncell.
A total amount of NPR9.59 billion in capital
expenditure was capitalised at end 2016. Ncell’s
focused strategic investments significantly
impacted its network coverage as well as quality,
and contributed towards revenue growth in the
Company.
Moving into 2017, Ncell will continue to focus on
extending its data leadership as a key growth
driver, by maintaining voice and international
long distance revenue contributions, expanding
its digital services portfolio, and putting greater
emphasis on operational efficiency to ensure
profitability and maximising shareholders’ value.
At the same time, Ncell is committed to offer
the highest standard of service to its customers
by embracing its core values of trust, innovation
and affordability throughout its delivery chain.
Financial Performance
In 2016, Ncell recorded revenue of NPR58.652
million, signifying an increase of 2.4% YoY on the
back of outgoing voice revenue increasing by
7% and data revenue growth of 70.3%. This was
achieved in spite of lower incoming international
long distance revenue contribution of 17% YoY.
EBITDA and PAT increased by 2.3% and 7.7%
respectively, mainly due to higher revenue as
well as lower operational expenses achieved
through effective cost management initiatives.
BLENDED ARPU
370
346
2015 2016
BLENDED MoU
(Per Sub Per Month)
127
146
2015 2016
NPR per Month
Minutes of use/sub/month
PAT
18,836
20,297
2015 2016
+7.7%
SUBSCRIBERS
13,039
14,917
2015 2016
+14.4%
NPR Million
Thousand
REVENUE
57,260
58,652
2015 2016
+2.4%
EBITDA & EBITDA
MARGIN (%)
64.3%
64.2%
36,823
37,659
2015 2016
+2.3%
NPR Million
NPR Million
Ncell