Mobile Telecommunications Limited (MTC) posted a 2.36% to N$1.48 billion increase in revenue for the six months ended March 31, 2023, buoyed by continued growth in data revenue, the resumption of roaming services, and the expansion of enterprise services.
The country’s largest mobile telecommunications company recorded a N$387 million after tax profit for the six-month period compared to N$395 million recorded in the prior comparable period.
Despite challenging economic conditions, the company’s Board Chairman Theo Mberirua said MTC has demonstrated resilience and achieved positive financial results.
“The company’s efforts towards SIM registration have also shown progress, with streamlined processes and customer support initiatives enhancing the registration experience for customers,” he said in a statement accompanying financials.
The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 3.3% to N$734 million, primarily driven by a reduction in direct costs
“The non-accrual of the CRAN levy, pending an appeal lodged with the Supreme Court, played a significant role in this reduction,” noted the telco.
The net profit after tax (NPAT) decreased by 2.19% to N$387 million due to the net recovery of MTC’s initial public offering costs in 2022, which was a one-time event, and a higher effective income tax rate in 2023.
The company declared an interim dividend of N$348,375,000, equivalent to N$46.45 per ordinary share, for the six months ended 31 March 2023.
The dividend payment details include the last day to trade cum dividend on 15 June 2023, the first day to trade ex-dividend on 19 June 2023, the record date on 23 June 2023, and the payment date on 7 July 2023.
Despite the positive financial performance, MTC acknowledges the challenges posed by external factors, such as the NamPower dependency on infrastructure and electricity and the risks associated with load shedding.
As part of its long-term growth strategy, MTC is actively pursuing a transformation from a Communications Service Provider (CSP) to a Digital Service Provider (DSP).
“This shift aims to adapt to the evolving digital landscape and meet the changing needs of customers. MTC also plans to expand its Mobile Financial Services (MFS) offerings, aiming to empower customers with convenient and secure financial solutions. The Bank of Namibia has granted MTC’s subsidiary, Windhoek General Administrators (Pty) Ltd, provisional authorisation to issue electronic money in Namibia,” the telco shared.
Meanwhile, revenue from contracts with customers reaches N$1.48 billion, with prepaid services leading the way.
The company reported a total revenue of N$1.48 billion, a substantial increase compared to N$1.45 billion in the same period last year.
According to the unaudited financial statements, revenue from contracts with customers was disaggregated into various categories, revealing the significant contribution of prepaid services.
Prepaid revenue reached N$930.52 million, surpassing the previous year’s figure of N$910.60 million. This increase demonstrates the growing popularity of prepaid plans among consumers.
In addition to prepaid services, other sources of revenue included contracts, roaming income, handset and accessories sales, interconnect income, bulk SMS revenue, site rental, and enterprise services.
MTC’s strong financial performance is also reflected in its property, plant, and equipment. The net book value at the end of the reporting period stood at N$1.51 billion, a significant increase from N$1.37 billion in the previous year.
The company made additions of N$66.15 million to its infrastructure during the six months, further enhancing its capabilities to meet the demands of its growing customer base.
However, the financial statements also highlighted depreciation expenses of N$114.57 million, reflecting the normal wear and tear of the company’s assets over time.
Nonetheless, these expenses were adequately off set by the revenue generated during the period.
