21/01/2021
MTC ANNOUNCES STRONG FINANCIALS AMIDST TOUGH TIME
21 January 2021 – Presenting its 2019/2020 financials in Windhoek today, Namibia’s premier digital
enabler, Mobile Telecommunications Limited (MTC) has maintained its leadership position and track
record of consistent growth, despite economic contraction amidst a global pandemic.
MTC 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.
Net Profit After Tax went down by 3.09 percent, a decline from N$797.0 million last year, to N$772.4
million recorded this year. This contraction is due to increase in tax rates.
The company also achieved 0.5 percent growth in (Earnings Before, Interest, Taxes, Depreciations
and Amortizations) EBITDA margin, to record an increase of N$1 397.1 billion, compared to last
year’s 1 345 billion. This increase is attributed to growth in prepaid customer revenue due to
competitive new Multiple Aweh, and Taamba products, and an increased trend in data traffic.
Despite challenges from external environments such as Covid-19 restrictions, unavailability of power
and slow approval of fibre installation, currency depreciation against the US$, the company has
managed to record Capital Expenditure increase by 5 percent to N$ 535 million. Most of this
expenditure was on network expansion projects such as 081Every1 and Capacity 2020.
Worth mentioning is 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.
MTC’s 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.
According MTC’s 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.”
End//
Issued by:
MTC: Corporate Affairs Department.
