Telecom Records N$140 Million Operating Loss

TELECOM Namibia recorded a operating loss of N$140 million in the 2012-13 financial year, which ended 30 September. Turnover for the group amounted to N$1,31 billion.

Telecom’s latest annual report showed that the company’s operating profit reduced significantly from a profit of N$117 million, the previous year to a loss of N$140 million in 2012-13.

Chief financial officer Robert Offner attributed the loss to the first consolidation of the results of Powercom (now TN Mobile), which the company acquired in the financial year. The company also reported impairment losses amounting to N$49 million, relating to its 44% shareholding in Mundo Startel in Angola.

Levies to CRAN amounted to N$22 million during the financial year. Distribution costs amounted to N$95 million while additional administrative costs amounted to N$64 million.

Telecom has struggled to get money from selling its shareholding in Mundo Startel with the matter dragging on since August 2012.

“With the opening of a Telecom Namibia bank account in Luanda, this process will hopefully gain momentum with respect to the payment to Telecom Namibia of US$2 million. Telecom recently sold its stake in Neotel South Africa to Vodacom.

Offner said given the continued uncertainty, lack of information regarding future shareholding and business plan at company reporting level, coupled with the lack of business urgency, an impairment of the US$12 million preference shares, N$99,6 million was deemed appropriate.

The 100% acquisition of Powercom took effect in November 2012 for a N$2 consideration. Telecom paid N$60 million for Powercom to repay capital loans to NedbankInvestec. Telecom plans to invest N$146,5 million in capitalising Powercom, Offner said.

Source : The Namibian