Telco, Mobile Telecommunications Limited (MTC) which is the largest mobile network operator in Namibia achieved revenue of more than N$3 billion with Net Profit after Tax (NPAT) increasing by 0.14% to N$794 million (2022: 6.7% increase) for the 2023 financial year.
In its financial results presentation last week, MTC highlighted that 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 delivered a good financial performance that is in line with the expectation for the financial year. 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,” the company said.
EBITDA growth was 1.7%, primarily due to the growth in revenue and the Company’s continued focus on cost control. Cost of sales increased with 17.2% as a result of the growth in the Enterprise sales and the impact of accounting provisions reversals in 2022.
On the other hand, direct costs increased by 1.1% because of currency devaluation and network, repairs and maintenance, offset by reduction of regulatory cost year-on-year. Marketing and Sales cost reduced with 9.0% due to a reduction in sponsorships and a more focused digitalized marketing approach.
Personnel costs increased by 14.2% as a result of the filling of vacancies particularly within the enterprise business which is labour intensive, inflation related increases and the introduction of a housing subsidy scheme.
“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 recognize investor sentiment towards ongoing macroeconomic, geopolitical challenges, regulatory development, and our dependency 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,” further stated MTC adding: “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.”
The company also said that one of its primary objectives is to enhance the customer experience by forging strong partnerships with content providers and Over-The-Top platforms. By offering its customers access to a diverse array of relevant and localized content, MTC aims to enrich their overall experience and drive data consumption. This approach not only enhances customer satisfaction but also fuels data revenue growth.
“We are committed to fostering a robust digital ecosystem. This entails investing in local app development and supporting the growth of digital startups. By nurturing this ecosystem, we not only stimulate data usage but also contribute significantly to the development of Namibia’s burgeoning tech industry. This commitment to local innovation aligns perfectly with our vision for a digitally empowered Namibia,” said the Telco.
MTC also shared its commitment to expanding mobile financial services.
“MTC, through its fully owned subsidiary Windhoek General Administrators (“WGA”), is dedicated to launch MFS offerings. In the upcoming quarters, we have ambitions to provide Namibians with convenient and secure financial solutions. 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. It’s noteworthy that Bank of Namibia has granted WGA a license to issue electronic money in Namibia in terms of the Determination on Issuing of Electronic Money in Namibia (PSD-3).
“We are confident in MTC’s ability to navigate challenges and seize opportunities. 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 MTC.
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