MTC grows revenue to N$1.6 bn

MTC revenue for the 2012 financial year has gone up 11% to N$1.6 billion, the company announced Wednesday.

Earnings before interest, taxes, depreciation and amortization (EBITDA) also increased by 11% to N$860 million while net profit rose 10.6% to N$353 million. The growth in revenue is mainly attributed to the introduction of the 38cents call tariffs and increased data sales. MTC Managing Director Miguel Geraldes said, although it was now cheaper to call, this cheap tariffs were generating more revenue to the business.
Capital expenses for the year were 71% up from the previous year at N$406 million meaning the company invested 115% of its profits. Geraldes defended the company’s decision to invest more capital than profit realised, saying the huge investment was necessary to retain customers. He said the company will in the next two years continue to invest at the same levels as such huge investment in network expansion gave MTC an advantage compared to its competitor.