MTC records N$2.7 billion in revenue during 2019/20 financial year
Digital enabler, Mobile Telecommunications Limited (MTC) has maintained its leadership position and track record of consistent growth, despite economic contraction amidst a global pandemic.
MTC recorded N$2.683 billion in revenue, a 2.66% increase from last year. The increase is owed to the company’s strategic response to the market’s evolving needs; cost containment; and
improved customers’ experience, resulting in customer base growth and increased data revenue.
According to the company’s Integrated Report and Annual Results for 2019/2020, presented by MTC CEO Licky Erasmus, Net Profit After Tax went down by 3.09%, a decline from N$797 million last year, to N$772.4million recorded this year. This contraction is due to increase in tax rates.
During the period under review, the company also achieved 0.5% growth in (Earnings Before, Interest, Taxes, Depreciations and Amortizations) EBITDA margin, to record an increase of N$1,397.1 billion, compared to last year’s 1,345 billion.
“This increase is attributed to growth in prepaid customer revenue due to competitive new Multiple Aweh, and Taamba products, and an increased trend in data traffic,” MTC added.
Despite challenges from external environments such as COVID-19 restrictions, unavailability of power and slow approval of fibre installation, currency depreciation against the US$, the company has managed to record Capital Expenditure increase by 5% to N$ 535 million.
“Most of this expenditure was on network expansion projects such as 081Every1 and Capacity 2020. Worth mentioning is that for 2019, the company declared a total of N$ 977.8 million in dividends to its shareholders, N$611 million of which were paid in December 2019, and N$ 366.8 million in June 2020,” they added.
According to the digital enabler, the additional June dividends were declared to address the concern that excess cash holdings was limiting our Return on Equity (ROE). For the year 2020, ROE stands at 36.4 percent, compared to 34.5 in 2019.
MTC’s Chief Executive Officer, Dr. Licky Erastu meanwhile said MTC will continue with its broad themes of revenue growth, market leadership, customer experience, and operational efficiency and its growth strategy.
“This is implemented through eight strategic focus areas. At the core of our strategy is the adherence to a customer-centric culture, and a drive to digitally transform our current and
future customers’ experience,” he added.
Meanwhile during the period under review, MTC continued to be the preferred digital enabler of choice, as the company recorded an increase of 2,575,000 million active subscribers, from 2,524,000 million last year.
Futhermore the company now enjoys 91% mobile market share, and is at 97.18% within reach of fulfilling its commitment to achieve 100 percent network coverage by population settlement.
L-R: Sencia Kaizemi-Rutaka (NPTH Board Chairperson); Hon. Leon Jooste (Minister of Public Enterprise); Theo Mberirua (MTC Board Chairperson); Hon. Peya Mushelenga (Minister of ICT), and Dr. Licky Erastus (MTC CEO).