Mobile Telecommunications Limited (MTC) has recorded a N$395.7 million after tax profit for the six months to 31 March 2022.
The telco’s revenues for the period increased by 5.3% y/y to N$1.46 billion, largely driven by pre-paid revenue, which grew by 6.8% y/y to N$910.6 million.
Post-paid revenue in 1H22 contracted by 6.1% y/y to N$368.1 million, however, subscriber numbers grew by 2.2% to 159,345 from 155,861 reported in FY21.
“Pre-paid subscribers grew by 0.9% over the same period to 2.34 million. The steady resumption of international travel has resulted in MTC recording roaming income growth of 26.4% or N$6.5 million to N$31.3 million,” IJG Securities said.
MTC’s enterprise services revenue came in at N$22.3 million for the period under review.
“The management team’s focus on enterprise services has started to pay off, with the company recording revenue growth in this segment of N$22.1 million or 11,220.3% y/y to N$22.3 million. Management notes that the new fixed line offerings maintained the momentum of 2H21,” IJG noted.
The company’s operating expenses outpaced revenue growth, increasing by 16.4% y/y to N$959.6 million.
“Almost all expense line items rose at a quicker rate than Namibian inflation of 4.5%. Management attributes the increase to the re-introduction of the CRAN levy in the 2022 financial year based on the newly instituted regulations following the High Court ruling. Personnel costs increased by 11.5% y/y to N$210.6 million, with no explanation given for this relatively large increase. Depreciation and amortisation increased by 11.6% y/y to N$209.7 million, which management ascribed to significant capital expenditure during the period.”
Investment income for the period, which consists of interest income earned on cash and bank balances as well as interest on contract assets rose by 182.5% y/y or N$37.8 million to N$58.5 million, while cash and cash equivalents increased by 10.7% to N$783.2 million from the N$707.6 million reported at FY21.
The company’s total assets grew by 6.1% y/y to N$3.57 billion for the period under review, largely driven by an 11.4% y/y increase in property, plant, and equipment (PPE) to N$1.37 billion.
“The significant growth in PPE was due to additions of network equipment of N$33.2 million during the period as well as a N$5.1 million addition of computer and pre-paid equipment.”
“Overall, the interim results are satisfactory, with revenue growth coming in in-line with our forecasts, but operating expenses growing quicker than forecast,” IJG said.
