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MTC grows revenue despite challenges

Mobile telecommunications giant, MTC increased total revenue by 3.2% to N$ 1,454.7 million in the financial year ended 30 September 2011 despite a drop in mobile termination rates which put pressure on voice call revenues, a financial mainstay of the company.
Total revenue increased to N$1,454.7 million from N$1,409 million the previous year spurred by growth in SMS and Data usage. Message usage increased by 24% during the reviewed 12 months, where the average MTC customer sent more than 400 messages per month while Data usage doubled.
More than 80,000 customers accessed the Internet through a PC or tablets and over 470,000 via their mobile phones, giving MTC close to 550,000 users accessing Mobile Internet from various platforms.
Presenting the company’s financial results early this week, MD Miguel Geraldes said despite showing signs of real maturity in the voice business, voice usage still increased substantially as a result of the drop in price per minutes in a competitive environment. The drop in prices however led to revenues slightly dropping by 1%.
Geraldes said penetration in Namibia, during the period under review, has now passed 108% consisting of 1,854,700 active MTC customers and an additional 435,000 for the other mobile operators. “The penetration rate of over 108%, according to our estimates, points to the fact that our subscribers regularly use multiple SIM cards or because they use more than one cellphone (private and business) or use it on different platforms; i.e. cellphone, laptop and tablets. This ultimately generates multiple usages of our services, which are very important,” he said.
But despite the increase in revenue, MTC’s EBITDA (Earnings before interest, taxes, depreciation and amortisation) margin decreased from 55.8% to 53.2% as a result of an increase in direct cost and direct network operating cost which was led by higher rental cost of leased lines and network repair and maintenance costs to support the network expansion, as well as the increase in traffic volumes.
The cost of leased lines increased by 24.8% and the repair and maintenance of the network by 32.7%. The unfavourable foreign exchange movement for the Namibia Dollar impacted EBITDA negatively as well.
Capital expenditure slowed down compared to the previous financial year, but still encompassed a substantial amount of net income after tax. The amount invested for the financial year under review amounted to N$ 236.6 million, and 74% of profit after tax.

About The Author

Following reverse listing, public can now acquire shareholding in Paratus Namibia


20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.