BTC profit plunges as rising costs bite
Lewanika Timothy | Monday July 6, 2026 06:00
The listed telecommunications operator reported profit before tax of P146.2 million, which is a 45% decline from P266.6 million recorded in the previous financial year. Revenue slipped 1.6 percent to P1.47 billion from P1.49 billion, reflecting continued pressure on traditional telecommunications services.
The results underscore the growing challenges facing telecom operators in Botswana, where slowing economic activity and shifting consumer preferences are eroding revenues from legacy voice services while requiring substantial investment in digital infrastructure and emerging technologies.
The state-backed telecommunications group attributed the weaker performance partly to prolonged economic headwinds, which have dampened consumer spending and business activity across the country.
BTCL said reduced demand for traditional fixed-line and mobile voice services continued to weigh on revenue generation, although growth in digital products and mobile financial services helped cushion the decline.
'The challenging economic environment continued to affect consumer spending patterns and demand across our traditional telecommunications products,' the company said in its annual financial results. Meanwhile, the company also faced mounting cost pressures as it accelerated investments aimed at strengthening its digital capabilities and expanding its market presence. Cost of services and goods sold rose by 13% during the year, driven primarily by higher spectrum costs and increased expenditure associated with the expansion of its mobile financial services operations.
BTCL said the additional expenditure was necessary to position the business for future growth.
'These investments are critical in ensuring that BTC offers a competitive product geared towards an improved customer experience and a customer value proposition consistent with our market share acquisition ambitions,' the company stated.
The telecommunications operator linked the difficult operating environment to broader macroeconomic challenges facing Botswana. The country's economy contracted by an estimated 0.7% during the period, largely due to continued weakness in global diamond markets, which reduced export earnings, constrained government revenues and dampened broader economic activity.
The economic slowdown extended beyond the mining sector, affecting household spending and private sector investment, with businesses across multiple sectors reporting weaker demand conditions.
Looking ahead, BTCL expects economic conditions to remain challenging in the short term as consumers continue to face financial pressures. However, management believes that improving macroeconomic conditions later in the year could support a gradual recovery in demand.
To position itself for that recovery, the company plans to complete several strategic investments focused on digital transformation and market expansion. These include the relaunch of its mobile brand with enhanced unlimited data packages, expansion of its 5G network footprint, digitised customer onboarding processes, prepaid fibre broadband offerings, HD voice services over LTE networks and travel eSIM products.
The investments form part of BTCL's broader strategy to diversify away from declining legacy telecommunications revenues and strengthen its position in Botswana's rapidly evolving digital economy.