MTC’s new innovative products pay off

By Hilary Mare

THE growth in prepaid customer revenue due to competitive new Mobile Telecommunications Limited (MTC) products, Multiple Aweh, and Taamba and an increased trend in data traffic has seen the company achieve 0.5 percent growth in (Earnings Before, Interest, Taxes, Depreciations and Amortisations) EBITDA margin, to record an increase of N$1.397 billion, compared to last year’s N$1.345 billion.

Presenting its 2019/2020 financials last week, MTC also highlighted that it had recorded N$2.683 billion in revenue, a 2.66 percent increase from last year.

“The increase is owed to the company’s strategic response to the market’s evolving needs, cost containment and improved customers’ experience resulting in customer base growth and increased data revenue,” the company said.

However, net profit after tax went down by 3.09 percent, a decline from N$797 million last year to N$772.4 million recorded this year.

“This contraction is due to increase in tax rates,” MTC said.

Despite challenges from external environments such as Covid-19 restrictions, unavailability of power and slow approval of fibre installation, currency depreciation against the US$, the company has managed to record capital expenditure increase by five percent to N$535 million. Most of this expenditure was on network expansion projects such as 081Every1 and capacity 2020.

MTC also noted that for 2019, the company declared a total of N$ 977.8 million in dividends to its shareholders, N$611 million of which were paid in December 2019, and N$ 366.8 million in June 2020.

The additional June dividends were declared to address the concern that excess cash holdings was limiting our Return on Equity (ROE). For the year 2020, ROE stands at 36.4 percent, compared to 34.5 in 2019.

According MTC chief executive officer, Dr. Licky Erastus, “MTC will continue with its broad themes of revenue growth, market leadership, customer experience, and operational efficiency and its growth strategy. This is implemented through eight strategic focus areas. At the core of our strategy is the adherence to a customer-centric culture, and a drive to digitally transform our current and future customers’ experience.”

The company also expressed that its balance sheet remains healthy, with no gearing and sufficient cash to maintain the quality of its network, pay attractive dividends, and fund its growth strategy.

“MTC continues to be the preferred digital enabler of choice, as the company recorded an increase of 2 575 million active subscribers, from 2 524 million last year.

“The company now enjoys 91 percent mobile market share, and is at 97.18 percent within reach of fulfilling its commitment to achieve 100 percent network coverage by population settlement,” MTC extended.