Martin Endjala
Namibia’s Mobile Telecommunication Limited (MTC) on Monday announced a revenue growth of 5.58%, or N$3.2 billion for the just-concluded financial year end of 2024.
It was a significant improvement compared to the N$3 billion in revenue for 2023.
MTC’s managing director, Licky Erastus, made the announcement during the company’s annual financial performance review for the year ending 2024.
Erastus attributed the revenue growth to increased demand for high-speed data connectivity, new innovative products and services, growth in roaming, and most importantly, a dedicated customer-centric staff that believes in creating a memorable experience for customers.
MTC recorded growth of 2.5% in subscribers for the financial year, despite a decline in prepaid subscribers during the compulsory SIM registration process, the impact of a severe drought, and high food inflation that negatively affected spending.
“MTC has been able to attract new subscribers with value-added products and service offerings that resulted in an increase in the total number of active subscribers from 2.17 million in 2023 to 2.22 million in 2024,” he indicated.
For the past 10 years, the company has openly shared its performance with the public, aiming to maintain transparency and keep them informed about the company’s financial and other performance.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) for MTC: Erastus said the company moved sideways.
In 2023, the company reported annual license fees of N$ 58.4 million as contingent liabilities to the Communication Regulatory Authority of Namibia (CRAN).
The EBITDA of the group decreased, and the main contributor was the launch of MTC Maris, which is expected to yield positive returns soon.
The company said it has continued to manage its costs with effective strategies to mitigate inflation, adverse foreign currency fluctuations and the cost of implementing new technologies that support business growth.
Net profit after tax decreased from N$ 796.9 million to N$ 772.9 million mainly due to an increase in depreciation and amortisation of 12% associated with the strategic decision to invest in new technologies, capacity increase and infrastructure roll-out.
MTC’s interest earnings are said to have increased due to high market returns on its investments, while cost escalation and extraordinary regulatory costs maintained pressure on EBITDA margins.
“We continue to monitor our EBITDA margins. The consolidated EBITDA included the MTC Maris operation. This investment in the fintech space is required to ensure future sustainability for the Group, which is well above the telecommunications market,” remarked Erastus.
MTC’s capital expenditure increased from N$587.6 million in 2023 to N$715.4 million due to investment in major projects that continue to support its vision and strategy.
This includes an additional approval of N$200 million to drive MTC’s own fibre implementation, thereby mitigating the dependency risk on our backbone fibre infrastructure.
The MD said it is optimistic about the future, especially with the launch of its mobile financial service offering through MTC Maris, which promises to enhance financial inclusion and sustainability.
