Chamwe Kaira
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 with a five percent total income growth compared to 3.7 percent in 2022, the company said in consolidated results for the year ended 30 September 2023.
MTC said 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 percent year-on-year growth,” the company said.
MTC declared a dividend of 88.45 cents per share which it said does not include the final dividend declared on 4 December.
Earnings before Interest, Taxation, Depreciation and Amortisation (EBITDA) dropped by 49.5 percent compared to 51.2 percent in 2022.
MTC said net profit after tax increased by 0.14 percent to N$794 million, an increase of 6.7 percent compared to 2022 results.
MTC said the EBITDA growth is 1.7 percent, primarily due to the growth in revenue and the company’s continued focus on cost control.
Cost of Sales increased with 17.2 percent as a result of the growth in the Enterprise sales and the impact of accounting provisions reversals in 2022.
Direct costs increased by 1.1 percent because of currency devaluation and network, repairs and
maintenance, offset by reduction of regulatory cost year-on-year.
Personnel costs increased by 14.2 percent 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.
Net profit after tax remained consistent due to an increase in total income of five percent which was offset by a 4.8 percent increase in total expense driven by elevated inflation trajectory, continued pressure on foreign currencies which the company is exposed to, the operational cost of the rollout of new technologies and tax increasing 7.7 percent
