PNH | Paratus Namibia Holdings - FY21 Results Review & Initiation of Coverage

    Paratus Namibia Holdings (PNH) released results for the year ended 30 June 2021(FY21). FY21 marked the reporting company’s first full year as the 100% shareholder of its operating company, Paratus Telecommunications (Pty)LtdNamibia (PTNA). Despite challenging economic conditions, PTNA continued to report impressive growth in its fibre customer base, which increasedby 108.9% y/y to approximately 2,500 subscribers.

    Given that PTNA is the main performance driver for the group, and management now releases financial results for PTNA, this report analyses and discusses PTNA’s operations extensively.Despite virtually identical income statements, PNH and PTNA have significantly different financial positions. The reader is hereby cautioned that PNH’s performance ultimately determines prospective investment returns.

    PNH’s top line increased by 123.4% y/y to N$340.6m, with the majority ofthe increase attributable to PNH increasing its stake in PTNA from 51.4% to 100% in August 2019. PTNA’s revenue, which constitutes 98.7% of PNH’s topline increased by 3.7% y/y to N$336.1m.

    PTNA’s EBITDA rose by 21.6% y/y to N$92.4m, partially due to theN$12.1m increase in revenue. Furthermore, the company achieved a N$24.0m reduction in cost of sales (before depreciation and amortization.)Overall, PTNA’s EBITDA margin rose from 23.4% in FY20 to 27.5% in FY21.


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