02 Jul 2018

With the overall economic environment for the year having been subdued, Botswana Telecommunications Corporation Limited (BTCL) has recorded a three per cent decline in revenues.

Announcing its financial results recently for the year ending March this year, BTCL managing director, Mr Anthony Masunga said they have recorded revenue of P1.59bn against the P1.638bn from the year ending in March 2017.

However, having declared dividends of 11.09 thebe per share amid a profitable environment for the year ending March 2017, this time around, investors of the Botswana Stock Exchange (BSE) listed company’s declared dividends stand at 9.70 thebe per share.

Mr Masunga explained that the subdued economic environment had led to the reduction in ICT spend from enterprises and government entities, with most entities negotiating for lower prices on new and existing services.

“The slowdown in spending also impacted the consumer segments as households were faced with prioritising their income on basic necessities.

Competition in the telecommunications sector continued to intensify with the entry of new Internet service providers leading to a downward pressure on prices.

This had an impact on our performance for the year,” said Mr Masunga.

He also noted that the company recorded an eight per cent decrease in profit after tax of P217m compared to P237m in the previous year and also the total assets stand at P2.43bn.

“Administrative expenses increased by nine per cent to P440m from P402m last year,” he said.

However, he said gross profit grew by three per cent due to 11 per cent reduction in cost of sales to P601m.

He noted that the company made significant savings on transmission and bandwidth costs on negotiated and competitive price offerings from their suppliers.

Mr Masunga further said revenue decline was mainly attributed to pressure on mobile revenue and other revenue lines remained relatively flat.

“We however saw an increase in the uptake of data-centric products in line with market trends.

The business made P121m worth of investments in fixed broadband expansion and LTE/4G mobile broadband optimisation to increase network coverage and enhance our value proposition,” he said.

He said the total comprehensive income increased by 13 per cent to P269m as a result of the revaluation of land and buildings, which is done every three years.

On the company’s outlook, Mr Masunga said the company was optimistic about its look on the back of positive economic forecasts and significant investments in the network, IT enterprise systems, retail shops and working environment.

 He said they were optimistic that such investments would allow them to seize opportunities that existed in the market, enhance customer experience as well as create value for shareholders.

“The company has realigned its organisational structure to deliver improved efficiencies in support of our business strategy.

Our strategic focus remains that of growth and transformation, anchored by cultural, commercial and technology transformation,” he said. ENDS