Mobile Telecommunications Company (MTC) has announced an impressive 5.85% revenue growth for the just ended financial year. Dr Licky Erastus shared the company’s performance at its annual Financial Performance Announcement today.
MTC has over the last 10 years openly shared its performance with the public in the interest of transparency and keeping the public informed about the company’s financial and other performance.
Dr Erastus explained that the revenue growth is attributed primarily to an increased demand for high-speed data connectivity, new innovative products and services, growth in roaming and importantly a dedicated customer centric staff who believe in creating a memorable experience for our customers.
A subscriber Year on Year growth of 2,5% was reported for the financial year despite a decline in Prepaid subscribers during the compulsory SIM registration process, the impact of severe drought and high food inflation that negatively affected spending. MTC have been able to attract new subscribers with value-added products and service offerings that resulted in an increase in the total number of active subscribers from 2.17 million in 2023 to 2.224 million 2024.
Prepaid ARPU grew by 13,6 % because of subscribers that signed up for the subscription base products and the demand for data.
Earnings before interest, tax, depreciation and amortization (EBITDA) for MTC the company moved sideways. The year-on-year cost comparison reported a settlement of the prior year’s annual license fees that were reported in 2023 under contingent liabilities of N$ 58,4 million. The EBITDA of the group decreased, and the main contributor was the launch of MTC Maris that is expected to yield positive returns in the near future.
MTC have continued to manage its cost with effective strategies to mitigate inflation, adverse foreign currency fluctuations and the cost of implementing new technologies that supports business growth.
Net Profit After Tax decreased from N$ 796.9 million to N$ 772.9 million mainly due to an increase in depreciation and amortization of 12 % year on year associated with the strategic decision to investment in new technologies, capacity increase and infrastructure roll out.
MTC’s Interest earnings increased due to high market returns on its investments while cost escalation and the extraordinary regulatory costs-maintained pressure on the EBITDA margins.
“We continue to monitor our EBITDA margins. The consolidated EBITDA included the MTC Maris operation. This investment in the fintech space is required to ensure future sustainability for the Group – which is well above the telecommunications market” remarked Dr Erastus.
MTC’s capital expenditure increased from N$587.6 million in 2023 to N$715.4 million because of the investment in major projects that continues to support its vision and strategy. This included an additional approval of N$200 million to drive MTC’s own fibre implementation to mitigate the dependency risk on our backbone fibre infrastructure.
Commenting on the company’s outlook, Dr Erastus expressed that “MTC is optimistic about the future, especially with the launch of our Mobile Financial Service offering through MTC Maris, which promises to enhance financial inclusion and sustainability. We remain focused on delivering exceptional services and innovative products to fuel growth and improve our customers’ experience. Some of our strategic initiatives include strengthening our mobile business with a forecasted growth in Prepaid revenues and in broadband under the Spectra brand, alongside substantial gains on our Enterprise Business Unit. Furthermore, we are fostering a journey towards digital transformation through strategic partnerships. Looking ahead, we plan to diversify our growth through digital financial services, enterprise expansion, and regional partnerships, while ensuring a high-quality customer experience. We are also excited about our ESG journey and will soon finalize an MTC tailored framework that speaks to the needs of Namibia and her people”