Small postpaid customer base carries nearly one quarter of MTC’s performance
Digital enabler, MTC for the financial year ended 30 September 2022 saw revenue growth of 3.7% reaching N$2.9 billion.
This translates to a 6.7% growth in profit, from N$793 million to N$743.2 million in the previous financial year.
The listed company also experienced a slight drop in its Earnings before interest, taxes, depreciation, and amortization (EBITDA) of 51.2% from 51.3% in its previous year. However, there has been a growth in Net Profits After Tax from 26.6% to 27.4% outperforming the listings prospectus by 10,4%.
According to MTC Chief Financial Officer Thinus Smit, the solid performance is attributed to a 6.4% increase in prepaid Average Revenue Per User (ARPU) 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 optimization accommodated growth in data traffic. This is also in addition to a growth of 15.9% in handset sales,” he said.
During the 2022 financial year, the Board declared an ordinary dividend of 32.28 cents per share, amounting to N$242.1 million, declared on 6 December 2021, and paid on 4 February 2022. This is in addition to an interim dividend of 37 cents per share, amounting to N$277.5 million, declared on 30 May 2022, and paid on 8 July 2022.
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. This is on account of 2,356,226 prepaid accounts which contribute 63% of revenue and generate an average revenue per user (ARPU) of N$64.9. Thecompany’s 161,560 postpaid customers accounts for 23% of revenue and generates an ARPU of N$356.5.
Chairperson of the MTC board, Theo Mberirua, emphasized the importance of leading innovation parallel to maintaining the vision of a telecommunication-efficient company.
“We had to be more innovative. The transition from a telecommunications company to a digital enabler has become more challenging and we are proud to announce that the journey has been a success. Today’s announcement is not just about numbers, but how we created value and how we will do so going forward,” said Mberirua.