MTC rakes in N$800 mln in profit
Staff reporter – MTC yesterday reported its 2019 results, showing compounding annual growth rates of 4.5% in revenue and a 9.6% in net profit since 2014.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) decreased with 10.1% primarily due to the adoption of the new International Financial Reporting Standards (IFRS) 15 accounting standard.
This effectively changed the way MTC now reports for post-paid subscription revenue, subscription fees, bundled services and additional cost of sales expenses for amounts previously recognised as right of use assets.
This resulted in a reduction in revenue recognised upfront, an increase in the cost of sales upfront and a consequent reduction in gross profit and net profit after tax.
“MTC remains financially sound with no gearing and cash generative, stable earnings and strong shareholder returns,” the company said.
In 2019 MTC achieved revenue of N$2.6 billion compared to the N$2.4 billion in 2018 and an EBITDA of N$1.345 billion (excluding IFRS 15 estimated of N$1.493 billion) compared to the previous year of N$1.496 billion.
Return on equity for the 2019 financial year was 34.5% compared to the previous year of 41.6% mainly as a result in shareholders equity value.
Dividends declared in 2019 was N$413 million compared to the previous year’s dividends of N$374 million.
MTC generated a total of N$1.3 billion in cash from operations before working capital movements of N$11 million, net interest earned of N$69 million, N$311 million tax paid, with N$581 million free cash flow before financing activities.
Despite tough economic conditions experienced in the Namibian market, MTC recorded N$797 million net profit after tax.
MTC’s strategy going forward will be centred around customer experience and bringing innovative products and services to the market in the interest of its customers.
Speaking at the launch, Dr Licky Erastus, MTC chief executive officer, assured all MTC customers that the company will continue investing in the latest technologies that will make their lives easier.
“We have and will continue to share our financial results publicly in the interest of transparency so that we account to you our most valued customers what we have done with your money,” said Erastus.