Demand for data, broadband push BTC revenue up
Lewanika Timothy | Tuesday July 1, 2025 10:52
The Botswana Stock Exchange-listed company reported a 30% surge in PBT from P200 million in the previous year to P259 million, underscoring improved operational efficiency despite pressure on margins. BTCL’s total revenue for its audited results for the year ended March, 31, 2025 rose by four percent year-on-year, to reach P1.49 billion compared to the P1.44 billion recorded in the prior period. Directors attributed the uptick to steady demand for its data and broadband offerings, as the company continues to transition towards more digital and enterprise-focused services. At the same time, the group managed to reduce its cost of services and goods sold by five percent from P637 million to P603 million, an indication of effective cost containment strategies and improved supplier management.
The company’s executives attributed the growth in top-line to increase in uptake of mobile data services and investment in fibre network expansion. “Revenue grew by four percent driven by continued uptake in fixed and mobile data services supported by investments in high-speed fibre networks and expansion of the mobile data infrastructure,” stated executive in a statement accompanying the results. It is, however, not rosy for the company as its earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin--a key profitability measure-- narrowed slightly from 32.5% to 30.1%, suggesting some increase in operational expenses and network-related investments. Despite this, BTCL’s commitment to future growth is evident in its aggressive capital expenditure stance. The company ramped up its capital investment programme, with Capex, short for capital expenditure, to revenue increasing from 14.3% to 20.2%.
This marks a strategic push to modernise infrastructure, improve service quality, and extend network reach across Botswana. BTCL’s earnings per share (EPS) climbed by 28% to 19.26 thebe, up from 15.00 thebe, offering a strong return for shareholders. Return on capital employed (ROCE) also improved significantly, rising from 6.1 percent to 7.5 percent, reflecting more efficient deployment of assets and enhanced profitability. The company’s results arrive at a time when the telecommunications sector is under pressure to evolve rapidly, with customers demanding faster, more reliable connectivity and businesses increasingly reliant on digital solutions. BTCL’s performance indicates that it is not only responding to these shifts but also positioning itself to lead in the next phase of digital transformation in Botswana. With margins under pressure but profits rising, BTCL’s results paint a picture of a company striking a careful balance between investment-led growth and financial prudence. Investors and stakeholders will be watching closely to see if the current momentum can be sustained amid increasing competition and technological disruption.