The Gambia Telecommunications Company Ltd (Gamtel) said it generated D1. 450 billion in revenue in 2011, compared to the D1.395 billion registered in 2010.
This was disclosed by Baboucarr Sanyang, the managing director of Gamtel Tuesday, while presenting the annual activity report and financial statements for the year ended 31st December 2011, before the Joint Session of the Public Accounts and Public Enterprises Committee (PAC/PEC) of the National Assembly.
According to him, this represented an increase of D0.055 billion representing 4% increase with a gross profit margin of 33%. He explained that the increase in revenue was due to the increase in international, interconnection and data revenue by D13M, D32M and D42M respectively.
Sanyang further disclosed that the total sales for the year amounted to D970M and of this amount, D430M related to payment of interconnection charges to GSM operators for calls terminated on to their networks. He said that D195M related to payments to foreign carriers for the carrying and termination of international traffic on to their networks while the company incurred a material cost of D345M in 2011 compared to D68M in 2010 which shows an increase of D277M which represented 407%.
The Gamtel MD, however, noted that the increase was associated with an increase in the operations and maintenance of the international gateway. On their technical activities for 2011, Sanyang said there was an upgrade of international Internet bandwidth from two STM-1s to three STM-1s, which increased the capacity of their network from 310Mbits to 465 Mbits and back up of 14Mbits via satellite.
The Gamtel boss told the Committee that in their corporate affairs, the company in 2011, signed a Delegated Management Contract (DMC) with the Gambia Agency for Management of Public Works (GAMWORKS) for the refurbishment and upgrading of Gamtel sites and facilities in readiness for the NGN project. He said the activities of customer services in the fiscal year 2011 were centered mainly on expansion projects to keep pace with the stiff competition in the telecoms industry in The Gambia, due to the introduction of substitute and competing products by GSM operators.
Since training and development initiatives have been part and parcel of the development of telecommunication sector in the country, he said it has contributed immensely to the development of the telecommunications sector in the country. He added: "The high demand for more work-specific and academic programmes had made Gamtel management to put in a lot of efforts and finances towards the upgrading of the company's training institute."
Sanyang finally disclosed that the total number of staff of Gamtel as at the year under review stood at 1,125 comprising of 852 male and 273 female, out of which 81 are at managerial level, 67 male and 14 female.
In a similar presentation, Almamy Kassama, the general manager of Gamcel, also presented their report before the Committee. He reported total revenue of D1.127 billion as at 31st December, 2011, compared to D761M in 2010. This, he said, represented an increase of D366M, representing 48% increase with a gross profit margin of 20%. D34M, D16M and D4M respectively attributed to the increases in revenue.
The Gamcel general manager explained that the total cost of sales for the year amounted to D900M, and of this amount, D522M related to free bonus given to customers while the company incurred a material cost of D116M in 2011 compared to D87M in 2010.
He further explained that the balance sheet has shown total non-current assets of D553M representing tangible fixed assets.He noted that there has been a decrease in tangible fixed asset from D637M to D553M as a result of depreciation charge for the year of D124M. He added that the total current assets stand at D68M as compared to D105M in the previous year.
On marketing and technicality, Sisay said Gamcel has embarked on network expansions while the commercial department manages the marketing and sales activity of the company through the creation and implementation of strategies aimed at adding value to Gamcel and its stakeholders profitably.
Ibraima Sanyang, a senior compliance officer at the Gambia Public Procurement Authority (GPPA) revealed that Gamtel and Gamcel were found to be fully compliant with the public procurement Act, their Attendant Regulations and Instructions during the period under review, before both reports where finally considered and adopted by the Committee.