STAFF WRITER
MOBILE data consumption has pushed up Mobile Telecommunications Limited (MTC) revenue by 15 percent, the interim financial results show.
The mobile service company’s financial results showed growing subscriber growth, improved product performance, and revenue uplift across its diversified portfolio.
This is despite macroeconomic, and evolving regulatory environment and operational pressures.“” Revenue increased by 15.8% from N$1.57 billion to N$1.82 billion driven by heightened demand for high-speed data and value-added services across mobile, predominantly from prepaid customersand the enterprise segment. This positive performance was driven by a 15.3% increase in prepaidARPU, a growing subscriber base of 4.6% following the successful completion of the SIM
registration project, and enhanced customer retention efforts,” the company said in its interim financials.
The company also recorded an increase in handset and accessories revenue by 23.4% pointing to strong consumer demand for smart devices and accessories. “The Enterprise Business Unit (EBU) continues to deliver strong results, with 40.2% revenue growth
and a 51% increase in connections reported in the period. Group revised the discount structure on
the airtime distribution which contributed to 2% revenue growth,” the results showed.
Other contributing factors to revenue growth include changes in inventories of finished goods which increase by N$35.3 million (17.2%) in line with revenue
driven by increased demand for handsets and accessories, network usage and subscriber growth.
Despite the increased revenues MTC said direct cost declined by 13.1% primarily due to a once-off expense of N$58.4 million recorded in the prior year, following a Supreme Court ruling that found MTC liable for levies to CRAN for the 2021, 2022, and 2023 financial years. “ The reduction was partially offset by, the introduction of Universal levy of 0.5% of revenue and 315% tariff increase in the numbering license fee of N$1.4 million for the period,” the results showed.
Despite the serious revenue growth MTC said ther recorded credit losses which increased by N$9.8 million, primarily attributed to rising affordability
pressures among customers.
“The Group has implemented targeted credit control measures, including enhanced customer engagement and stricter credit assessments for new postpaid
accounts. These actions are expected to improve recoverability and reduce future bad debt levels.
Overall, the Group delivered a strong financial performance in the 1st half of the financial year, supported by revenue growth and improved operational efficiencies. This is evident from the 38.3% increase in net profit and these results reflects successful execution of the Group’s strategic objectives and indicates our ability to deliver sustainable value to the shareholders despite a challenging economic environment,” the company said.
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