Bumper interim dividend for MTC
Despite the challenging economic conditions, locally-listed Mobile Telecommunications (MTC) said it has demonstrated resilience during the six months ended 31 March 2023, with revenue increasing by 2.36% year-on-year (y/y) to N$1.48 billion.
The telecoms giant on Thursday released it latest interim results on the Namibian Stock Exchange (NSX), saying the increase in revenue was driven by continued growth in data revenue, the resumption of roaming services, and the expansion of enterprise services.
The group made an operational profit of about N$533.9 million for the period under review, an increase of around 6.5% compared to the same half-year in 2022.
Headline earnings down
MTC’s profit after tax came in at about N$387.04 million, a decrease of 2.19% year-on-year (y/y).
The group said the decline was mainly due to the net recovery of the group's initial public offering (IPO) costs in 2022 as a one-time event, as well as a higher effective income tax rate this year.
Headline earnings per share (HEPS), a profitability indicator, came in at 51.6c – a drop of 1.9% y/y.
The group declared an interim dividend of 46.45c per share, around 25.5% more than the same half-year in 2022.
Outlook
MTC said it remained optimistic about the future of the group.
“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,” it said.
As part of its long-term growth strategy, MTC is actively pursuing a communications service provider (CSP) to digital service provider (DSP) 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 personalised experience to our valued customers,” MTC said.
Mobile financial services
The group is also dedicated to expanding its mobile financial services (MFS) offerings.
“We have ambitious plans to launch MFS in the coming quarters, aiming to empower our customers with convenient and secure financial solutions. This expansion into the financial sector aligns with our commitment to innovation and providing comprehensive services that cater to the diverse needs of our customer base,” MTC said.
The Bank of Namibia (BoN) 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).
MTC listed on the Local Index of the NSX in November 2021. Shares were offered at N$8.50 a piece in its IPO.
MTC closed at N$7.08 per share on Friday. The share price has gained nearly 0.6% since the beginning of this year.
The telecoms giant on Thursday released it latest interim results on the Namibian Stock Exchange (NSX), saying the increase in revenue was driven by continued growth in data revenue, the resumption of roaming services, and the expansion of enterprise services.
The group made an operational profit of about N$533.9 million for the period under review, an increase of around 6.5% compared to the same half-year in 2022.
Headline earnings down
MTC’s profit after tax came in at about N$387.04 million, a decrease of 2.19% year-on-year (y/y).
The group said the decline was mainly due to the net recovery of the group's initial public offering (IPO) costs in 2022 as a one-time event, as well as a higher effective income tax rate this year.
Headline earnings per share (HEPS), a profitability indicator, came in at 51.6c – a drop of 1.9% y/y.
The group declared an interim dividend of 46.45c per share, around 25.5% more than the same half-year in 2022.
Outlook
MTC said it remained optimistic about the future of the group.
“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,” it said.
As part of its long-term growth strategy, MTC is actively pursuing a communications service provider (CSP) to digital service provider (DSP) 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 personalised experience to our valued customers,” MTC said.
Mobile financial services
The group is also dedicated to expanding its mobile financial services (MFS) offerings.
“We have ambitious plans to launch MFS in the coming quarters, aiming to empower our customers with convenient and secure financial solutions. This expansion into the financial sector aligns with our commitment to innovation and providing comprehensive services that cater to the diverse needs of our customer base,” MTC said.
The Bank of Namibia (BoN) 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).
MTC listed on the Local Index of the NSX in November 2021. Shares were offered at N$8.50 a piece in its IPO.
MTC closed at N$7.08 per share on Friday. The share price has gained nearly 0.6% since the beginning of this year.
Comments
Namibian Sun
No comments have been left on this article