MTC posts N$511m half-year profit
Mobile Telecommunications Company (MTC) has reported a profit after tax of N$511.9 million for the first half of its financial year, up 1.6% on the same period a year ago, as strong growth in prepaid, roaming and enterprise services drove revenue higher.
Total revenue reached N$1.95 billion for the six months ended 31 March 2026, with the group's subscriber base expanding to approximately 2.37 million customers across prepaid, postpaid and enterprise segments.
Prepaid revenue rose 9.1%, underpinned by customer growth of 4.1% and uptake of Aweh bundles. Enterprise revenue surged 31.4%, supported by a 29% increase in customers and rising demand for integrated connectivity solutions.
Roaming revenue climbed 45.2%, largely owing to higher inbound data roaming connected to internet of things activity during system upgrades in the Namibian automotive industry.
Postpaid revenue fell 7.2%, a decline MTC described as deliberate, reflecting a strategic decision to cut bundle prices and offer additional free data to grow that segment over the longer term. Customer numbers in the segment nonetheless grew 2.9%.
Margins under pressure as costs rise
The group's earnings before interest, tax, depreciation and amortisation margin narrowed to 47.4% from 49.4% a year earlier, as operating costs outpaced revenue growth across several lines.
Personnel costs rose 18.6%, driven by headcount additions, regrading and annual salary increases. General and administration costs climbed 12.3%, partly reflecting higher software licences and the full-period effect of enhanced security services. Direct costs were up 7.7%, mainly due to additional transmission capacity between northern regions and Windhoek, as well as new spectrum licence fees.
Despite the cost pressures, profit before tax edged up N$8.5 million, or 1.2%, to N$730.8 million. The effective corporate tax rate fell from 31% to 30%, providing a modest boost to the bottom line.
Interim dividend declared
The board declared an interim dividend of 47.78 cents per share, totalling N$358.4 million, payable on 24 July 2026. Shareholders of record as at 3 July 2026 will be eligible. The last day to trade cum-dividend is 26 June 2026.
MTC said it would focus the remainder of the financial year on accelerating broadband adoption, expanding enterprise contracts and monetising its digital platforms through targeted marketing and continued fibre deployment.
The group flagged global and regional economic uncertainties, including trends in disposable income, inflation and interest rates, as factors it would monitor closely.
MTC Maris, the group's financial services unit targeting unbanked and underbanked customers, is advancing the rollout of a WhatsApp channel and a dedicated mobile application to complement its existing USSD platform.
