Namibia’s dominant mobile phone operator, Mobile Telecommunications Limited (MTC), will pay out 46,45 cents per share dividend early next month – the highest in the company’s listed history.
This brings the cumulative dividend paid since the company listed late 2021 to about N$1,57 per share.
The 46,45 cents per share will be paid from the N$387 million earned over the six months ending 31 March.
Much of this profit will be paid out as dividend, as the company has maintained a high distribution ratio, and will only keep for reinvestment about N$39 million.
The released interim financial statements show that the company’s revenue, profit from operations and assets increased.
Revenue edged up to N$1,48 billion and at that rate MTC might breach the N$3-billion revenue ceiling by year end.
Profit from operations was also strong at N$533 million, while assets closed the six months at N$3,7 billion.
Cash at the end of the six months has, however, dipped compared to the same period last year at N$760 million.
Last year, cash and cash equivalents were at N$783 million.
Prepaid customers continue bringing in much cash for MTC, with revenue recorded at N$930 million, while contract customers saw a decline to N$353 million from N$368 million.
The company remains on a healthy path with a solid balance sheet, and very limited debt. Total liabilities were just about N$1 billion, and N$2,6 billion in reserves and equity.
Looking ahead, the directors said they remain optimistic and will focus on providing innovative solutions that will continue to drive growth and customer satisfaction.
However, the directors acknowledge the challenges posed by external factors, such as NamPower’s dependence on infrastructure and electricity, and the risks associated with load shedding.
Furthermore, the company said it is dedicated to expanding its mobile financial services (MFS) offerings.
“We have ambitious plans to launch MFS in the coming quarters, aiming to empower our customers with convenient and secure financial solutions,” said the directors.
This expansion into the financial sector aligns with our commitment to innovation and providing comprehensive services that cater to the diverse needs of our customer base.
The Bank of Namibia has also resolved to grant Windhoek General Administrators (Pty) Ltd a wholly owned subsidiary of MTC, provisional authorisation to issue electronic money in Namibia.
The full interim financial statements are available on MTC’s website, and its shares started off the week trading at N$7,08 per share.
Email: lazarus@namibian.com.na
Twitter: @Lasarus_A
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