Mobile Telecommunications Limited (MTC) released results for the year ended 30 September 2021 (FY21). Profit after tax for the year fell by 3.8% y/y to N$743.3 million but came in 20.2% higher than the forecasted figure in the prospectus. ROE fell from 36.3% in FY20 to 32.8% in FY21. Afinal dividend of 32 cps was declared for the year.
Revenue for the period grew by 4.3% y/y or N$115.9 million to N$2.80 billion. The increase was primarily driven by pre-paid revenue which grew by 7.2% y/y and handset and accessory sales which increased by 16.2% y/y. Post-paid revenue fell by 4.9% y/y as a result of the challenging economic climate while roaming income fell by 10.3% y/y due to international travel being disrupted. Management’s focus on enterprise services is starting to yield results as the company recorded a 334.5% y/y increase in enterprise revenue.
At the end of the period, MTC had 2.32 million active pre-paid subscribers (FY20: 2.42 million) and 155,861 post-paid subscribers (FY20: 154,129). The decline in pre-paid subscribers is due to MTC shortening the lifespan of inactive pre-paid SIM cards during the year. Management noted atthe results presentation that the company plans on rolling out its mobile financial service in the first half on next year, and that it will not compete with current solutions available in the market, but to instead complement them.
