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MTC big money-spinner in first listed year

Jo-Maré Duddy
In its first year as a listed company, MTC paid out N$519.6 million in dividends to its 5 524 shareholders.

The telecoms giant, which debuted on the Local Index of the Namibian Stock Exchange (NSX) last November as the first state-owned enterprise to list, yesterday released its financial results for the year ended 30 September 2022.

MTC reported a profit after tax of nearly N$793.04 million, about N$49.7 million or 6.7% more than its 2021 financial year.

Total income for the 12 months under review exceeded N$2.9 billion. Compared to the same period in 2021, this is an increase of nearly N$103 million or 3.7%.

Headline earnings per share (HEPS) – a profitability gauge – came in at 105.81c, up 6.8% year on year (y/y).

MTC declared a final dividend of 42c per share (2021:32c), bringing the total dividend of the year to 69.29c (2021:80c).

According to the group’s Integrated Annual Report (IAR) 2022, also released yesterday, the Government Institutions Pension Fund (GIPF) owns 28.65% of the shares in MTC, while other private institutional and retail investors have a stake of 11.22%. The bulk of MTC – 60.13% - is in the hands of state-owned Namibia Post and Telecommunications Holdings (NPTH).

CORPORATE GIANT

MTC employed more than 760 people in its past financial year, paying them N$412 million in salaries and benefits. In addition, the group spent N$8.8 million in training and development, including bursaries.

Of its total operating costs in the past financial year, MTC spent 30.5% on employee remuneration, training and development. In 2021, this figure was 29.7%.

Around N$1.2 billion was paid to suppliers, of which 95% are local. MTC spent N$158 million on BEE-accredited local suppliers.

About N$2.54 billion flowed into government coffers as proceeds from MTC’s listing.

The group invested N$4.9 million in rural electrification and N$514 million in network and systems infrastructure.

MTC remains the market leader, enjoying 90% of the mobile market share in Namibia’s telecoms market. Its covers some 98% of the population.

The group had nearly 2.52 million subscribers during the year under review, of which nearly 2.36 million were prepaid customers.

Prepaid subscribers accounted for 63% of revenue. Growth of 1.5% in prepaid customers was reported as postpaid customers took up more affordable options, MTC said.

TAX

In total, MTC paid N$638.2 million in tax in its 2022 financial year.

“We paid N$0.29 in corporate tax for every N$1 we made in profit,” the group saidin its IAR.

MTC paid N$355.6 million (2021: N$360 million) in direct taxes during the year under review. A total of N$83.4 million (2021: 65.5 million) was paid in pay-as-you-earn tax (PAYE) on behalf of employees. Customs and import duties amounted to N$80.7 million (2021: N$88.5 million).

Value-added tax (VAT) of N$201.9 million (2021: N$181.6 million) was paid.

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Allgemeine Zeitung 2024-11-23

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