Namibia - MTC declares revenue of N$1,4 billion for 2011

Mergers, Acquisitions and Financial Results

MTC has released a mixed bag of annual financial results for 2011 with revenue growing 3,2 per cent to N$1,4 billion, but profit dipping 14,2 per cent to N$319 million.

Miguel Geraldes, MTC managing director, said the mobile operator’s shareholders have accepted lower profits for 2011 as funds have been redirected and invested back into the company. Geraldes said that MTC’s performance has been solid through 2011, as total revenue grew by 3.2 percent from 2010 to approximately N1,45 billion. Earnings before interest, taxes, depreciation and amortization (EBITDA) for 2011 is N$774 million, a decrease of 15 percent from 2010, where the amount was N$785 million.

Geraldes also announced that the dividends which MTC paid to its shareholders for 2011 decreased by 4,9 per cent, or N$19 million, compared to 2010.
The dividends paid to shareholders are lower because of the decision to re-invest in the company.

MTC’s penetration rate has now surpassed 108 per cent of Namibia’s population and by September last year the mobile operator had well over 1,7 million subscribers. Geraldes said that MTC calculates this figure through the number of active sim cards which have been used in the last three months.

With regard to the regulatory environment in Namibia, Geraldes said that two significant events have had an impact. The first was the establishment of the Communications Regulatory Authority of Namibia (Cran) and the second was  the decision by the Namibia Communication Commission (NCC) to intervene in retail prices set by service providers for their products.

According to a statement from MTC, the mobile service provider “maintains that the NCC did not follow proper procedures to intervene in retail prices and that this decision will end up hurting customers and future entrants into the market.”
The mobile operator also said that it “continues to struggle with the authorities (Windhoek Municipality) for authorisation to erect the much needed base stations (cellphone towers).