MTC records 2.66 percent increase in revenue
Increasing customer numbers and growing customers are the key drivers of revenue growth.
25 January 2021 | Business
During 2020, MTC experienced 7.9 percent growth in prepaid customer revenue due to MTC’s competitive new Multiple Aweh and Taamba products. Licky Erastus, Chief Executive Officer (CEO): MTC
Making the announcement at the launch of the MTC’s Integrated annual report for 2019/20 MTC’s Chief Executive Officer (CEO), Licky Erastus said, retaining or increasing customer numbers and growing customers are the key drivers of revenue growth.
“During 2020, MTC experienced 7.9 percent growth in prepaid customer revenue due to MTC’s competitive new Multiple Aweh and Taamba products. Significant uptake of Multiple Aweh during lockdown boosted Aweh subscriptions by 21.6 percent. The increased trend in data traffic continued after lockdown and established a firm foundation for 2021,” he said.
The CEO however noted that postpaid revenue decreased as the number of financially distressed customers increased and Mobile Homes closed during lockdown. MTC retained loyal postpaid customers by temporarily suspending or reducing the duration of their contracts and switching them to prepaid subscriptions to cut costs.
Erastus added that roaming revenue decreased 29 percent due to the Covid-19 travel restrictions. The reduction in postpaid customer numbers was due to the financial affordability of customers due to Covid-19, as well as Covid-19-related disruption in the supply of imported handsets.
Speaking at the same occasion, Chairperson of the MTC Board Theo Mberirua said: “Namibia experienced a relatively low Covid-19 health impact and actions taken to prevent the spread of the virus worsened an already weak economy, particularly the tourism and related sectors.”
However, the telecommunications industry experienced a surge in demand for mobile and fixed-line services as work and lifestyle patterns changed, increasing the reliance of individuals and businesses on digital connectivity.
The mobile company further paid a dividend of N$ 997 million to the state for the 2019/20 financial year and supported the disbursement of N$ 1 million in Covid-19-related interventions. - Nampa