MTC earns better above 2021, prospectus estimates

Mobile Telecommunications Limited (MTC) shareholders will receive a 42 cents per share dividend next February, as their share of the N$739 million profit the company has earned for 2022.

This will be the highest dividend to be declared since the company listed late last year, and has the last day to trade to participate in the dividend set on 13 January 2023.

The financial results for the year ended 30 September 2022 were released yesterday, and paint a picture of a company that is dominating the market without space to expand, however, plans are in place to have an all digital billion-dollar business.

Largely reliant on its prepaid customers, which make up 63% of revenue, the company said its N$2,8 billion revenue for the 2022 financial year was driven by the increase in demand for data, growth in prepaid products and continued expansion of enterprise services.

In 2021, revenue was at N$2,7 billion, which only grew by 6,7% this year, and 10,4% when compared to the financial estimates indicated pre-listing in the company’s prospectus.

At least 1% of the increase in the revenue was attributable to new revenue streams such as enterprise and home fibre market.

The company maintained its leadership in the Namibian mobile market, with a 90% market share and a customer base of 2,52 million (2021: 2,48 million).

It has 161 560 postpaid subscribers which account for 23% of revenue and generate an average revenue per user of N$356,50.

Average revenue per user for prepaid customers was at N$64,90 for the financial year.

This base could, however, topple if all its customers do not register for the mandatory SIM card registration come next year.

Earnings before interest, taxes, depreciation and amortisation increased by 3,2% to N$1,4 billion, primarily due to revenue growth and cost containment.

Personnel costs increased by 6,9% in 2022 due to the filling of vacancies and inflation-related increases.

Total paid to employees as salaries was N$433 million.

The chief executive and key management team have a combined earning of N$34,9 million.

Chief executive Licky Erastus and chief financial officer Thinus Smit earned over N$10 million in the last year.

Bonuses paid to them for the 2022 financial year were at N$2,8 million for Erastus, more than his salary of N$2,7 million and N$1,5 million for Smit, whose salary is N$1,5 million.

Direct costs increased by 3% as a result of currency fluctuations and new network technology roll-outs.

Sales and marketing costs increased by 2,4% to fund promotions that drive MTC’s brand visibility, including the promotion of value-added offerings.


The company said it was modernising its service systems, adopting new business models centred on data, enabling IT to support agility, and growing new revenue streams.

Reporting on this, Erastus said the intention is for the company to maintain its mobile market share of 90% through 100% population coverage.

Erastus said the company has also forged smart partnerships with some 40 organisations, which will assist in ensuring diversified service offerings.

The company also said it intends to aggressively push its fintech offering, and not necessarily in competition with the commercial banks, but it has identified the unbanked, which it will target.

In the results commentary, the directors said “despite the economic impacts on customer affordability, we expect demand for data services to continue unabated in 2023, with positive consequences for new and existing revenue streams”.

The company has a balance sheet worth N$3,7 billion against a strong retained income of N$2,5 billion.

Cash and cash equivalents at the end of the financial year stood at N$806 million.

The company said it has plans to reduce its electricity usage by 5% and carbon emissions by 10% as part of its strategy and will continue to invest in its social projects which cost over N$15 million during the financial year.

About N$355,6 million was paid to the government in terms of direct taxes and N$514 million invested in network and systems infrastructure to keep Namibians connected.

Board chairperson Theo Mberirua said the board will review and maintain oversight over strategy execution, ensuring that the strategy remains responsive to risks and opportunities.

“We will monitor performance against strategic targets and maintain MTC’s focus on its expansion into mobile financial services, which represents a significant future growth market,” he said.

The company’s shares are still trading below the initial public offer price, and closed at N$7,03 per share on Wednesday.

The full financial results will be released on the company’s website today, as well as the integrated report.
Twitter: @Lasarus_A

Stay informed with The Namibian – your source for credible journalism. Get in-depth reporting and opinions for only N$85 a month. Invest in journalism, invest in democracy –
Subscribe Now!

Latest News