CHAMWE KAIRA
Paratus Namibia Holdings Limited expects revenue for the year ended 30 June 2026 to increase by between 10% and 30%, but says headline earnings and basic earnings per share are expected to fall by more than 30%.
The Namibia Securities Exchange-listed telecommunications company attributed the anticipated decline in headline earnings per share (HEPS) and basic earnings per share (BEPS) primarily to losses from its mobile business, which was launched in September 2025.
According to a trading statement issued on 23 September, the mobile operation remains in its early growth phase and has resulted in substantially higher operating costs.
Paratus said additional infrastructure funding had also increased finance costs, while the expanded network had resulted in higher depreciation.
“Profitability is expected to improve as mobile revenue and the customer base grow and operating efficiencies are realised,” the company said.
Despite the higher cost base, Paratus said its overall financial performance for the 2026 financial year is expected to outperform its budget.
The company attributed the expected performance to stronger-than-anticipated growth in its traditional business, which it said benefited from increased brand awareness following the mobile launch.
The directors said mobile customer sign-ups remained consistent with the approved business plan.
In September last year, Paratus launched the first private mobile network in Namibia with LTE and 5G technologies.
Paratus has invested an unprecedented N$1.417 billion in network infrastructure since 2018. Additionally, a further N$600-million was invested in the mobile network.
Paratus also said that, despite the costs associated with launching and expanding the mobile business, the company continued to generate positive cash flows.
The anticipated revenue growth contrasts with the expected decline in earnings, reflecting the financial impact of the company’s investment in its mobile network during its first year of operation.
Paratus expects to publish its unaudited results for the year ended 30 June 2026 on or about 30 September 2026.
