Telecom Revenues Breach Billion-Rand Mark
Windhoek – Telecom Namibia revenues rose by seven percent in the financial year ending September 2012 to reach R1.22 billion, the company revealed this past week.
The state-owned company said distribution costs increased to R291m (US$32m), up by 18 percent, which was in line with expectations given the growth in services rendered.
An EBITDA profit (before interest, taxes, depreciation and amortisation) of R127m (US$13m) was realised, up by 23 percent compared to the previous year.
Frans Ndoroma, Telecom Namibia’s Managing Director, commented that: “Business was challenging in 2011/12 but we managed to increase turnover by seven percent.
“We closed the year with good operating results, which have positioned us well for the future.”
The growth is mainly due to the increased uptake of the company’s broadband offerings off the back of capital investment amounting to R746m since 2009 made in modernising its network.
There was a 500-percent increase in broadband subscribers from 2009 to 2012 and this was expected to grow further.
“Our market share has remained strong thanks to the Speedlink product,” said Telecom’s board chairman, Joseph Iita.
Speedlink is a fixed broadband product, which offers unlimited Internet usage at a flat rate.
Contrary to worldwide industry trends, the total number of fixed lines grew with 13 percent between 2009 and 2013, Telecom said.
The company said 74 fixed wireless (WiMAX) base stations are in operation, while 128 ADSL fixed broadband sites have been rolled out to date to provide always-on, high-speed Internet access and voice-managed service to customers throughout the country.
It said the West Africa Cable System (WACS) undersea cables have put Namibia at the forefront of regional connectivity.
Regional and international points of presence in London, Frankfurt, Johannesburg and Cape Town are being installed to allow for cheaper and seamless connections for Namibia, Telecom said.
To fully utilise WACS, Telecom Namibia built a redundant national fibre network towards Zambia, Zimbabwe and Botswana. Namibia through Telecom Namibia and mobile company, MTC Namibia has invested US$37.5m (R345.97m) in the cable. Telecom Namibia made capital investment of R235m (US$25.47m) during the 2011/12 financial year, with total assets increasing by 2.5 percent to R2.6b. The telecom entity was established in August 1992 and wholly owned by the Namibian government.
It functions on a commercial basis, as a subsidiary of its parent company, Namibia Post and Telecom Holdings Limited. Telecom Namibia served more than 145 360 customers, with 1 134 employees.
It runs the largest Digital Telecommunication Network in Namibia and it’s the leading supplier of voice, text, data and video solutions.