Mobile Telecommunication (MTC) Limited recorded an after-tax profit of N$794 million
for the year ended 30 September 2023, a slight increase from N$793.04 million attained in 2022.
This comes as the telecoms company during the period under review, realised a revenue growth of 5.3% to N$3 billion, driven by an increase in demand for data among other services..
“Income growth was driven by the increase in demand for data, growth in prepaid products, resumption of roaming services and continued expansion of enterprise services. The demand for fixed-line services continued showing momentum during the year and realised a 114.6% year-on-year growth,” MTC Managing Director, Licky Erastus said.
“Despite the challenging economic conditions, such as elevated inflation and the weaker local currency against the US Dollar, the company adapted, whilst advancing its strategic goals of continuous investments in CSI, innovation, digitisation, network expansion and optimisation.”
In addition, Erastus said net profit after tax remained consistent due to an increase in total income of 5.0%, which was offset by a 4.8% increase in total expense driven by elevated inflation trajectory, continued pressure on foreign currencies which the company is exposed to, the operational cost of the rollout of new technologies and tax increasing 7.7%.
He further revealed that for the 2023 financial year, MTC spent N$504.1 million on network and systems infrastructure and a further N$1.7 million invested in HTTPS to develop homegrown technology.
In addition, N$471 million was used on staff remuneration, N$4.4 million on training and development; whereas N$663.3 million was paid in dividends.
In the same vein, N$240.8 million was paid in direct taxes, while N$123.1 million was also invested in radio network capacity expansion, and N$2.06 million in rural electrification.
Erastus also said MTC spent a whooping N$1.6 billion on procurement of which 95% was spent on locals.
“We remain optimistic about the future of MTC. Our focus on providing exceptional services, innovative products and solutions will continue to drive growth and enhance customer experience. We recognise investor sentiment towards ongoing macroeconomic, and geopolitical challenges, regulatory development, and our dependence on NamPower’s infrastructure.
“The high inflation is impacting consumer spending, whilst our cost reduction ambition is being challenged by high inflation and currency devaluation. Strategic initiatives as part of our long-term growth strategy, MTC is undergoing a transformation from a communications service provider to a digital service provider. This strategic shift reflects our dedication to adapt to the evolving digital landscape and cater to the ever-changing needs of our customers,” he said.
Regarding mobile money, Erastus said MTC is dedicated to launching the offerings through its fully owned subsidiary, Windhoek General Administrators (WGA).
The development follows the Bank of Namibia having granted WGA a license to issue electronic money in Namibia in terms of the Determination on Issuing of Electronic Money in Namibia (PSD-3).
“This expansion into the financial sector aligns with our commitment to innovate and deliver comprehensive services that cater to the diverse needs of Namibians and specifically ensuring financial inclusion to the unbanked. We are confident in MTC’s ability to navigate challenges and seize opportunities, as our team remains dedicated to executing these strategic initiatives with precision. We are focused on enhancing the customer experience, driving sustainable growth, and continuing to innovate in a rapidly evolving digital landscape,” said Erastus.
