Africa-Press – Namibia. SHAREHOLDERS of recently listed Mobile Telecommunications Limited (MTC) will receive a 37 cents-per-share dividend in early July, the company announced this week.
This interim dividend would be paid for the financial half-year ending on 31 March – for which financial statements show a growing company revenue, but a fall in profit over the term.
Revenue was recorded to have skipped to N$1,4 billion from N$1,3 billion in 2021, with profit slumping from N$397 million to N$395 million.
Operations in general have weakened in terms of profitability, within the six months when compared to 2021, wiping out at least N$62 million in operating profit.
At the end of March 2021, operating profit was at N$563 million, but over the same period in 2022, operating profit slumped to N$501 million.
Rescuing operations from a deep decline was investment income, which skipped up almost N$40 million.
The company’s balance sheet remained strong, edging up to N$3,5 billion, although liabilities soared slightly by some N$79 million.
Most of the company’s revenue continues to come from the prepaid segment, which grew to N$910 million.
In March last year, prepaid revenue was at N$852 million.
Revenue from the contract segment, however, declined to N$368 million from N$391 million in March last year, while roaming income grew to reach N$31 million.
The company had a healthy cash flow at N$783 million which will be dropped to N$277 million dividend.
Despite the high revenue when compared to 2021, the company had many cash payments to make which saw cash from operations slumping from N$627 million to N$575 million – but when compared to year end balances, a positive cash flow movement was recorded at N$81 million.
MTC has 2,3 million prepaid subscribers and 159 345 contract subscribers – reaching 2,5 million active subscribers at the end of the six months.
Commenting on the financial statements, MTC’s directors said although the economy remained under pressure subsequent to Covid-19, MTC has generated higher revenues by responding to customer needs for faster, simpler, more convenient and more cost-effective telecommunication.
The company said it will continue to implement its customer-centric digital transformation strategy with the objectives of keeping its customers connected, maintaining financial performance and maximising the value of its shares,while continuing to generate proceeds for Namibia’s national fiscus.
Despite this confidence call, the share price at the end March this year were trading at N$8, lower than the initial public offer (IPO) price of N$8,50.
On Wednesday, shares were trading at N$7,51 per share further down their IPO price.
The company has also raised a N$70 million contingent liability in relation to a High Court ruling on the licence regime in which the company was tussling with its regulator, the Communications Regulatory Authority of Namibia.
The Bank of Namibia has estimated that the telecommunications sector this year will contract by 2% to N$2,6 billion, and MTC might feel the pinch from reduced consumer spending.
The last day to trade to receive the dividend is 17 June, and the payment date is set for 8 July.
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