MTC reports robust financial performance for the fiscal year
Telecommunications company, MTC recently last week reported a robust financial performance for the fiscal year, aligning with market expectations despite prevailing economic difficulties, including elevated inflation and currency fluctuations against the US dollar.
The company demonstrated adaptability while progressing on strategic objectives focused on continuous investments in Corporate Social Investment (CSI), innovation, digitization, network expansion, and optimization.
In its financial highlights for the fiscal year 2023, MTC demonstrated a noteworthy 5% increase in total income compared to 3.7% in the previous year.
The income growth was primarily propelled by surging demand for data services, prepaid products, the resumption of roaming services, and sustained expansion within enterprise services. Particularly, fixed-line services exhibited substantial momentum, achieving an impressive year-on-year growth of 114.6%.
Here is a snapshot of the company’s financial performance for the year:
Total Income for 2023 reached N$3,049,954, up from N$2,905,316 in 2022.
Profit from Operations rose to N$1,099,709 compared to N$1,061,273 in the previous fiscal year.
Profit after tax marginally increased to N$794,175 from N$793,039 in 2022.
Earnings per share saw an uptick to 105.89 cents from 105.74 cents.
The final dividend per share declared for the year ended 30 September 2023 stood at 38.80 cents, announced on 4 December 2023. Notably, the dividend of 88.45 cents per share does not include this final dividend.
Furthermore, the company reported a 49.5% Earnings Before Interest, Taxation, Depreciation, and Amortization (EBITDA) margin for 2023, slightly lower than the 51.2% recorded in the previous year. Net Profit after Tax (NPAT) experienced a marginal increase of 0.14% to N$794 million compared to a 6.7% increase in 2022.
Examining the cost dynamics, the Cost of Sales surged by 17.2% due to the growth in enterprise sales and the impact of accounting provision reversals in the preceding year. Direct costs increased by 1.1% because of currency devaluation and network maintenance, mitigated by a reduction in regulatory costs year-on-year.
While marketing and sales costs decreased by 9% owing to reduced sponsorships and a more targeted digital marketing strategy, Personnel costs surged by 14.2%. This increase was attributed to filling vacancies within labor-intensive enterprise businesses, inflation-related increments, and the introduction of a housing subsidy scheme.
Despite a consistent Net Profit after Tax, the 5% increase in total income was offset by a 4.8% rise in total expenses. This surge was propelled by elevated inflation, currency pressures, operational costs related to new technology deployment, and a 7.7% increase in taxes.
Looking ahead, the company announced a final dividend of 38.80 cents per ordinary share for the fiscal year ended 30 September 2023. Details for dividend payment include the last day to trade cum dividend set for 12 January 2024, with the ex-dividend trading starting on 15 January 2024. The record date is 19 January 2024, and the payment date is slated for 02 February 2024.
Despite facing ongoing macroeconomic challenges, MTC remains optimistic about its future. The company aims to continue providing exceptional services and innovative products while navigating regulatory developments and economic uncertainties.
