Mobile Telecommunications (MTC) Limited has recorded a N$793 million after tax profit for the period ended 30 September 2022, a 6.7% growth when compared to N$743.2 million recorded in the previous financial year.
The listed telco’s total income for the period came in at N$2.9 billion, a 3.7% increase from prior year.
The company recorded new revenue of N$52.9 million, a significant increase compared to N$25.6 million from last year.
According to MTC’s Finance Director Thinus Smit, the solid performance is attributed to a 6.4% increase in prepaid Average Revenue Per User in addition to continued expansion into the enterprise and home fibre markets.
“New products and solutions enhanced our enterprise, postpaid and prepaid services. The increased investment in network expansion and optimisation accommodated growth in data traffic. This is also in addition to the smart partnerships, including a growth of 15.9% in outright handset sales,” he said.
According to the company’s financials, its prepaid business remains the biggest contributor to its revenues, contributing over N$1,8 billion, an increase from N$1.7 billion in the last financial year.
To bolster its product offering, the company announced its ongoing plans to venture into the fintech space, riding on its huge subscriber base.
“In our business plan we identified a portion of our subscriber base which is unbanked. At this point in time not looking to go into competition, but rather service the customers that are not serviced by commercial banks at this point in time,” Smit said.
“What is the advantage and why will the business case work? We have the connectivity and we have the customer and at the end of the day, what is the need? That is the reason we looking into that.
It’s not to offer a current account, but it’s to offer financial services and fintech services via the device where we have coverage.”
McKinsey estimates that Africa’s financial-services market could grow at about 10% annually, reaching about US$230 billion in revenues by 2025 (US$150 billion excluding South Africa), which is the largest and most mature market on the continent.”
The company’s financials, comes after it became the first public enterprise in the country’s history to successfully transition from being 100% state-owned, with Government outright owning the business through the Namibia Post and Telecommunications Holdings Limited (NPTH), to fully complying with the NSX listing requirements and securing a listing on the bourse.
The listing came as the company raised N$2.541 billion from its Initial Public Offering (IPO) which closed at the beginning of November 2021, by far the largest IPO in Namibian history and more than three times larger than the previous IPO.
