Martin Endjala
Namibia’s leading mobile communications operator, Mobile Telecommunications (MTC), recently announced a substantial income growth of N$3 billion for the 2023 financial year, representing a 5.0 percent increase compared to the N$2.9 billion recorded in 2022 at a growth rate of 3.7 percent.
These figures were revealed in the company’s consolidated results for the year ending on September 30, 2023, with a profit of N$1 million and earnings per share at 105.89 cents.
MTC’s Managing Director, Licky Erastus, expressed optimism about the company’s future, emphasizing its commitment to providing exceptional services, innovative products, and solutions that will drive growth and enhance the customer experience.
Erastus acknowledged the challenges posed by macroeconomic factors, geopolitical issues, regulatory developments, and the company’s reliance on Nampower’s infrastructure. He noted that high inflation is impacting consumer spending, while the company’s cost reduction goals face challenges due to inflation and currency devaluation.
The income growth of MTC was attributed to increased demand for data, the growth of prepaid products, the resumption of roaming services, and the continued expansion of enterprise services. Additionally, fixed-line services experienced significant momentum, achieving a year-on-year growth of 114.6 percent.
Net Profit after Tax saw a slight increase of 0.14 percent, reaching N$794 million compared to N$793 million in 2022. Meanwhile, the cost of sales increased by 17.2 percent, primarily driven by enterprise sales growth and the impact of accounting provision reversals from the previous year.
Direct costs increased by 1.1 percent due to currency devaluation and network repairs and maintenance, offset by a reduction in regulatory costs year-on-year. Marketing and Sales costs were reduced by 9.0 percent through decreased sponsorships and a more focused digital marketing approach.
Personnel costs increased by 14.2 percent due to filling vacancies, particularly within the labour-intensive enterprise business, inflation-related raises, and the introduction of a housing subsidy scheme.
Erastus also revealed that as part of MTC’s long-term growth strategy, the company is transitioning from a Communications Service Provider to a Digital Service Provider. This transformation reflects MTC’s commitment to adapting to the evolving digital landscape and addressing the changing needs of its customers.
He emphasized the company’s dedication to fostering a robust digital ecosystem, which includes investing in local app development and supporting the growth of digital startups. Erastus believes that nurturing this ecosystem will not only stimulate data usage but also significantly contribute to the development of Namibia’s growing tech industry.
This commitment to local innovation aligns with the vision for a digitally empowered Namibia. Erastus expressed confidence in MTC’s ability to navigate challenges and seize opportunities while remaining dedicated to executing strategic initiatives with precision.
“We are focused on enhancing the customer experience, driving sustainable growth, and continuing to innovate in a rapidly evolving digital landscape,” concluded Erastus.
