Mobile Telecommunications Limited (MTC) which was recently listed on the Namibian Stock Exchange has recorded an after-tax profit of N$743.3 million for the 12 months ended 30 September 2021.
Revenues for the period under review increased by 4.3% to N$2.799 billion, a position attributed to an increase in data demand due to remote working because of the advent of COVID-19.
“This growth is attributed to fixed line offerings which gained momentum during the second half of the year; increased demand for data and product innovations driven by changing technology trends and remote working during COVID-19. The improvement in operational profitability was supported by strong interventions by our commercial and distribution teams in response to customers’ changing needs.”
According to the company’s financials, its prepaid business remains the biggest contributor to its revenues, contributing over N$1,7 billion, an increase from N$1.6 billion prior year.
MTC’s contract business come in with N$738 million in revenues, while the telco sold handset and accessories worth N$149.4 million during the period under review, with COVID-19 impacting its roaming revenue which decline to N$50.6 million from N$56.4 million prior year.
MTC’s bulk SMS business brought in N$48.6 million , an increase from N$46 million prior year.
The company recorded N$1.43 billion in Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA), representing a 2.7% increase from last year’s N$1.397 billion.
MTC increased its capital expenditure for the period to N$618 million from N$535 million the previous year.
“This is to continue enhancing its projects ’capacity and processes and controls to support project implementation and speed of delivery. Now more than ever, we are committed to our broad themes of revenue growth and diversification and to creating long, medium-, and short-term value for our now vast shareholders,” MTC’s Managing Director, Licky Erastus said.
In the period, MTC maintained its dominance of Namibia’s mobile telecoms market with a market share of 88% and a customer base of approximately 2.5 million.
As reported by The Brief, the Government Institutions Pension Fund (GIPF) is the second largest shareholder in the telco with a 28%.54 stake, followed by Ninety-One Namibia Managed Fund with 1.04%, Allan Gray Namibia Balanced Fund with a 0.8% stake and the Namibia Post and Telecom Holdings (NPTH) holding a controlling 60.13%.
MTC has declared a dividend of N$0.85 per share for the period.
