Mobile telecommunication giant, MTC say they have made N$1.245b, but will not give dividends to their shareholders.
Despite the company pinning its growth on an expanding clientele base, which now stands at two million, a closer look at MTC’s financial results shows that the company’s shareholders will lose out on N$19m, following a slump on the company’s actual profit by 14%.
On 5 December last year, a dividend of N$169 000 was declared but has not yet been paid out to the shareholders.
The decrease in the dividend sharing has been attributed to dwindling profits after taxes.
In real terms, MTC’s dividend declarations went down by a moderate 4.9% while the company also experienced a steep decrease in the subscriber base from a 38% increase in 2006 when the company had firm monopoly of the communications sector to a 21% decrease in 2007 when Government moved in to break the monopoly and lowered interconnection rates in the sector in 2011.
While the three years were tough, the actual statistics on the ground show that MTC’s publicised customer boom only took its ascension in the last three months since September to the end of the financial year under review.
This translates to a 15% decrease in subscribers within three years raising questions on whether the two million subscribers recorded now all have active numbers in an approximately 2.5 million populace.
Company Managing Director, Miguel Geraldes said; “The payment of dividends as declared by the board was 100% of profits after taxes in the previous financial year.”
The company showed a decrease in voice-call revenues with customers preferring to use the SMSes instead.
MTC did not let the opportunity pass to continue its challenge on the decision by the regulatory authority; CRAN then known as NCC, to intervene in controlling retail prices.
MTC Namibia has also expressed its readiness to roll out the 4G technology, making it amongst the first countries in the world to do so but has remained diplomatically quite on its accusations towards CRAN for denying it the licence to do so early this year.
Even though it experienced the above-mentioned problems, MTC had other major breakthroughs to celebrate.
The end of their financial year witnessed the growth of pre-paid customers, which saw an increase in revenues.
MTC gives back to the community, with 1% of the company’s revenue targeted towards sports in the country.
MTC is the biggest sports sponsor in Namibia with a whooping N$17.5m.
However, despite the few challenges, MTC had 1 454 million active subscribers within the past three months.
The penetration rate of over 108% could be because subscribers use multiple sim cards and more than one cell phone.