11 March 2014

Namibia: Multiple SIM Cards Drive MTC Growth

THE country's biggest mobile phone operator, Mobile Telecommunications Limited (MTC) Namibia, added 176 281 new active SIM connections, passing the 2,2 million mark in 2013, the company says in its 2013 annual report released on Friday.

MTC says active SIM connections are now increasing at single digit increments, showing the level of the market at the moment.

"The main reason for this growth is the increase in multi SIM cards usage connecting multi devices, cellphones, smartphones, tablets, and computers per customer," says Miguel Geraldes, managing director of MTC said.

The company announced a revenue growth of 13,3% increasing its revenue to N$1,8 billion from N$1,6 billion in 2012, with contributions from both revenue groups; post and pre-paid services.

The strong control of operating expenses resulted in a growth of 17,2% (2012:11%) in the Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) margin.

The EBITDA margin remained above 50% as from 2011, as EBITDA grew from N$859.4 million to just over N$1 billion as a result of proper implementation of cost management policies.

MTC reinvested 101% of net profit to renew the radio access network and to provide its own transmission to reduce network running cost. Net profit increased from N$353 million to N$424 million. MTC declared a dividend of N$384 million in 2013 compared to N$341 million in 2012.

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