Chamwe Kaira
Communications company, Paratus Namibia plans to invest N$137.8 million investment into infrastructure in 2024, the company said in the Integrated Annual Report 2023 released recently.
Paratus said this investment will mainly be earmarked for capital expenditure projects. These projects include the completion of the fiber route running through Botswana to connect South Africa with the Equiano Submarine Cable, long-term evolution (LTE) expansion to the major towns of Namibia, which provides inter-alia Paratus with the ability to compete in the lower market segment.
The capex will be funded with own cash resources only, the company said.
Paratus Namibia Holdings Limited is listed in the Technology Sector on the Namibian Stock Exchange (NSX) with the purpose to pursue investments in the Information Communication and Technology Sector in Namibia primarily. For the financial year ended 30 June 2023, the Group, realised recurring revenue of N$434.9 million (30 June 2022: N$357.8 million) which represents a growth of 21.5 percent.
The net profit before taxation, for the group, for the same period amounts to N$31 million (30 June 2022: N$39.8 million) and earnings before interest, taxation, depreciation and amortisation (“EBITDA”) amounts to N$163 million (30 June 2022: N$122.7 million). This represents a decline of 22.2 percent and a growth of 32.8 percent respectively.
The company said the main contributor to the decline in profitability was the increase in non-cash depreciation charges emanating from new infrastructure completed during the year and the increase in finance costs. Finance cost increase related to increased interest rates combined with the additional finance cost on the second tranche of N$130 million, raised through the listed Domestic Medium-Term Note Programme. The total capex for the financial year ended 30 June 2023 amounts to N$454 million (2022: N$282 million).
