Paratus swings to N$36m loss
Paratus Namibia Holdings grew revenue strongly in the year to June, but the cost of expanding its network and launching mobile services pushed the telecommunications group into a loss.
Revenue increased 23.7% to N$806.1 million from N$651.9 million, but Paratus swung from a restated profit of N$22 million to a loss of N$36.4 million.
The group launched its mobile service in September 2025, making the year to June its first full reporting period with the new business.
Mobile generated N$94 million in revenue during the period. At Paratus Telecommunications, the group's operating company, N$77 million of operating costs was linked to the mobile project.
The wider cost base also increased as the group served a larger customer base and continued investing in its network. Operating expenses rose 41.3% to N$328.9 million, while advertising and marketing costs at the operating company almost doubled to N$39 million.
Finance costs also increased, rising to N$86.6 million from N$73.2 million as the group took on funding for network expansion.
The result was a sharp decline in operating profit, which fell to N$14.3 million from N$58.4 million.
The group also earned less from its cash and investments, with investment income falling to N$18.5 million from N$36.6 million.
A better second half
The annual figures, however, hide a marked improvement in the second half.
Revenue rose to N$424.8 million in the six months to June, compared with N$381.3 million in the first half. At the same time, operating expenses fell to N$153.2 million from N$175.7 million.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 44.1% to N$118.7 million in the second half.
Gross margin also improved to 48.5% from 39.1%, suggesting that the growing customer base was beginning to generate more revenue against costs that do not increase at the same rate.
For the full year, however, EBITDA was broadly unchanged at N$201.1 million, compared with N$198.4 million, while the margin fell to 24.9% from 30.4%.
Paratus said the second-half performance indicated that the increase in its cost base had largely stabilised.
Debt and investment
The group reduced its borrowings to N$479.6 million from N$620.8 million, mainly after settling a vendor financing arrangement. Cash increased to N$51 million from N$12.1 million.
Paratus remained within the limits attached to its debt, although its financial headroom narrowed during the year.
Capital spending also fell sharply as the mobile network moved from construction into operation. Paratus Namibia invested N$256.7 million during the year, compared with N$471.4 million previously.
About N$36.6 million of the latest investment went towards the mobile project, compared with N$389.2 million in the previous year.
Mobile growth
The board said mobile subscriber numbers were tracking the business plan and that the service remained in its early revenue-building phase.
It expects the growing customer base to help absorb the costs associated with launching the service as the business matures.
The company did not declare a dividend for the year, compared with 10 cents per share in 2025. The board said the decision reflected the need to fund its growth plans.
Paratus also restated its 2025 results following corrections to previously reported figures. The restatement reduced 2025 profit attributable to shareholders by N$4.5 million and lowered earnings per share from 26.29 cents to 21.7 cents.
