MTC ‘rings’ in billions for fiscus

By: JO-MARÉ DUDDY

MTC has filled the pockets of its two shareholders, Government and Portugal Telecom, with nearly N$2,4 billion since 2001 – N$1,244 billion in dividends and N$1,139 billion in taxes to the fiscus, the company’s latest financial results show.

Both dividends and taxes have grown constantly over the past nine years. Dividends catapulted from N$6,4 million in 2001 to N$389 million in 2009, while taxes increased from N$26 million to N$198 million over the same period.
The company made a net profit of N$389 million last year, the same amount it has declared as dividends for 2009.
Of this, Government gets the lion’s share of N$264 million through state-owned Namibia Post and Telecommunications Holdings (NPTH) as the majority shareholder with 66 per cent interest. Portugal telecom, who invested N$1 billion in MTC in 2006, will receive N$125 million.
Revenues and customers grew equally impressive.
In 2001, MTC earned a total revenue of N$262 million. Last year, Namibia’s biggest mobile operator raked in nearly N$1,4 billion in revenue.
Customers, active ones and not just the mere number of SIM cards sold, spiralled by 241 per cent from 2005. The company ended 2009 with 1 283 530 active customers and within a month this figure jumped by nearly 100 000 – by January this year MTC had 1 374 997 active customers.
Announcing the 2009 results last Thursday, MTC Managing Director Miguel Geraldes said the company performed solidly despite facing tough times last year. There was the impact of the regulation which saw the interconnect termination rate decreased, as well as the volatility of the Namibia dollar against the US dollar and the euro.
“These pressures put tremendous strain on the Ebitda [earnings before interest, taxes, depreciation and amortisation] and net profit margins,” Geraldes said. MTC nevertheless achieve an Ebitda margin – generally an indication of a company’s operating cash flow –  of 53,8 per cent compared to 50,9 per cent in 2008.
“This growth is mainly a result of an introduction of a more accurate way to capitalise handsets offered to contract customers, now reflecting an investment in retention of the post-paid customers instead of a cost,” Geraldes explained.
MTC intends furthering its investment in Namibia by N$411 million in 2010.

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