MTC reports growth amidst ‘tough year’
Customers remain top priority
MTC says it embraces agile methodologies and flexible organizational structures in order to respond swiftly to changing market dynamics.
The country’s largest mobile telecommunications firm, MTC Namibia, has attributed its 6% rise in organic earnings for 2024, coupled with a data growth 25,9% year-on-year, to affordable bundle offerings as well as capacity and coverage expansion of the network.While releasing its annual results on Tuesday, MTC’s Namibia chief finance officer (CFO) Thinus Smit said “it was not an easy year, but we remain customer-centrist and we will continue focus on growing our base”.
MTC also reported that its prepaid revenue increased by 6%, driven by a 13.6% rise in prepaid average revenue per user.
Its total revenue grew by 5.85%, while Aweh prepaid bundles showed a year-on-year subscription revenue growth of 11.4%.
MTC also reported a shift in postpaid strategy which is aimed to transition customers to competitive packages for sustainable growth.
Spectra brand
The results indicate that its spectra brand saw a 41% increase in connections and a 29% rise in revenue, while home fiber coverage reached 72%, with plans for further expansion.
“Extended backhaul and metro fibre networks by 300 kilometers to support growing demand,” the report notes.
“MTC continues to invest in the network and systems to ensure sustainability. The capital investment for the year under review amounted to N$715 million. This included the strategic decision to expand the fibre network, the fibre will be used for transmission. The split is between property plant (61%), equipment (32%) and intangible assets that included licenses and 7% for the right of use assets,” MTC said in its results announcement presentation.
It further states: “As an investor the short term and long-term returns are important. For the long-term MTC invested to ensure good network and systems that accommodated future needs from the MTC subscribers. For the short-term MTC paid dividends of N$545 million for the financial year ended 30 September 2024.”
Dividend
MTC reported that it declared a final dividend of 49.27% which resulted in 81% of profit after tax declared for the 2024 financial year.
In terms of its corporate responsibility, the company announced that the areas that enjoyed priority included education, supporting orphans and vulnerable kids, poverty alleviation, health, SME development and job creation.
“For MTC it is important to create long-term benefits to all Namibians. One example is the MTC internship program that was converted to national internship programme. The benefits are that not only MTC but more corporates and or individuals can participate with limited additional cost. The main portion of the funds ended up where the assistance is needed the most. I encourage that corporate Namibia take this and join forces to limited the cost and ensure benefits reaches those in need,” the company stated.