BTC bounces back to profitability
Staff Writer | Thursday June 29, 2017 18:00
While revenues rose by a healthy eight percent in the period, the huge jump in the profits was largely attributed to a 26% fall in costs, as the telecommunications company did not factor in any impairment charges this year. In 2016, BTC factored in over half a billion pula in impairments charges, a factor that was largely responsible for the loss in that year.
Anchored by across the board increases in fixed, data and mobile revenues, BTC’s revenue rose eight percent in the current financial year to P1.6 billion from a flat growth in the previous year.
“Fixed telephony revenues increased by four percent. Fixed voice continues to provide a solid revenue base for the company contributing 32% to total revenues.
“Revenue from data services on the other hand increased by 21%, with contribution to total revenues increasing from 26% to 29%,” managing director, Anthony Masunga said in a statement.
The mobile division was the largest contributor to revenues in the year at 37% having jumped five percent in the year.
In the period, total costs declined by 26% year-on-year as no impairment adjustment was recognised as compared to the prevous year when P522 million impairment was charged.
BTC says cash balances increased by 32% from P390 million to P516 million as they were boosted by the capital raised during listing on the Botswana Stock Exchange of P250 million. Dividends paid during the year amounted to P90 million compring a March 2016 dividend of P52 million, which was paid in August 2016, and a September 2016 interim dividend of P38 million which was paid in February 2017.
The company also invested in its infrastructure in the period which saw capital expenditure increasing by 57% on the back of capital commitments to strategic projects such as Mobile 3G/4G Expansion, Billing Platforms Convergence, Data Centre and Network Operation Centre (NOC).
Total assets in the period increased by 19% from prior year’s P1.9 billion to current year at P2.3 billion. Looking ahead, the company said the telecommunications landscape continues to evolve, with further liberalisation of the market.
“BTC remains very optimistic about its future prospects, as it continues to leverage on its unique product offering and wide network coverage to consolidate its position to become a market leader in communication services.
“The company will continue to make significant investments in its network and people, in order to provide quality, reliable and affordable services to its customers, while creating value for its shareholders,” BTC said. BTC closed yesterday’s trading at P1.30 per share.