Mobile Telecommunications Limited (MTC) has said that it is dedicated to expanding its Mobile Financial Services (MFS) offerings and has ambitious plans to launch MFS in the coming quarters.
The Telco highlighted that it is doing this aiming to empower its customers with convenient and secure financial solutions.
In its unaudited condensed consolidated financial statements for the interim reporting period ended 31 March 2023, MTC further stated that this expansion into the financial sector aligns with its commitment to innovation and providing comprehensive services that cater to the diverse needs of their customer base.
“Bank of Namibia has resolved to grant Windhoek General Administrators (Pty) Ltd, a wholly owned subsidiary of MTC, provisional authorisation to issue electronic money in Namibia in terms of the Determination on Issuing of Electronic Money in Namibia (PSD-3),” said MTC adding: “We are confident in MTC’s ability to navigate challenges and seize opportunities. We will continue to execute our strategic initiatives, enhance customer experience, and drive sustainable growth. We appreciate your on-going support as we work towards creating long-term value for all stakeholders.”
As part of its long-term growth strategy, MTC is actively pursuing a CSP to DSP (Communications Service Provider to Digital Service Provider) transformation.
“This shift will enable us to adapt to the evolving digital landscape and meet the changing needs of our customers. Our intent is to enhance our portfolio of digital services and leverage emerging technologies to provide a seamless and personalized experience to our valued customers,” noted the firm.
PERFOMANCE
Despite the challenging economic conditions, MTC has demonstrated resilience and achieved positive results. Revenue increased by 2.36% to N$1.48 million, driven by continued growth in data revenue, the resumption of roaming services, and the expansion of enterprise services.
“We have also seen progress in our efforts towards SIM registration. Although it presented certain challenges, we continue to manage its impact on customer numbers and revenue. Our streamlined processes and customer support initiatives have facilitated a smoother registration experience for our valued customers and continue to grow the SIM registration footprint and streamline the process to be as fast and convenient as possible,” explained MTC.
Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA) increased by 3.3% to N$734 million.
This growth can be attributed to a reduction in direct costs, primarily due to the non-accrual of the CRAN levy pending the appeal lodged with the Supreme Court, MTC said.
On the other hand net Profit after Tax (NPAT) decreased by 2.19% to N$387 million with the telco noting that this decline was mainly due to the net recovery of MTC’s initial public offering costs in 2022 as a one-time event and a higher effective income tax rate in 2023.
“Looking ahead, we remain optimistic about the future of MTC. Our focus on providing exceptional services and innovative solutions will continue to drive growth and customer satisfaction. However, we acknowledge the challenges posed by external factors such as the Nampower dependency on infrastructure and electricity, and the risks associated with load shedding. The growth prospects for the Namibian economy have been revised upwards to 4% in 2023, surpassing the mid-year estimate of 2.8%.
“However, we recognize that investor sentiment toward South Africa remains weak due to the on-going electricity crisis and allegations involving South Africa and Russia. Consequently, we anticipate continued pressure on the Rand, leading to increased inflation and impacting consumer disposable income. Furthermore, the Rand has depreciated by 12% since January 2023, presenting an additional challenge for consumers and MTC to mitigate costs.”