BTC records double digit profit growth
Botswana Telecommunications Corporation has delivered a double- digit growth in profit after tax of 16 percent in its latest annual financial report.
The company’s profit jumped from P139 million recorded in the financial year ended 30 March 2020 to P165.8 million recorded in the year ended 31 March 2021. According to the Botswana Stock Exchange listed outfit, profit growth was driven by increase in revenue and robust cost reduction strategies, accelerating earnings before interest and taxes, depreciation and amortization ( EBITDA) to P463 million, consequently leading to an increase in cash. In addition, the profits come despite the unraveling COVID- 19 challenges on the economy that has drained operations for companies. “The pandemic, however has emphasized that telecommunications data services, underpinned by reliable high speed connectivity are an absolute necessity for businesses and households. “This is necessary to enable the shift towards work- from- home, e- education, e- commerce and other services to support digital transformation,” said BTC Managing Director, Anthony Masunga.
The double figure increase in profits comes in the company’s first year of a three- year strategy, which is focused on the strengthening of the core business, optimising efficiencies and return on assets, in addition to pursuing growth opportunities. Though BTC is celebrating positive achievements for year ended 31 March, the company highlights that outbreak of COVID- 19 has come with a knock on the company in the first half.
“The start of the financial year coincided with the implementation of the national measures to contain the Covid- 19 virus, leading to national lockdowns. The national lockdown placed pressure on our performance for the first half of the year; however, we have since seen a decent recovery in our financial performance year on year,” said Masunga. Meanwhile, the Group has also reported revenue of P1.43 billion, which is a one percent increase compared with the prior year. “This increase in revenue was driven by the monetisation of significant investments in fixed and mobile broadband infrastructure in support of high speed internet service at homes across most parts of the country,” said Masunga.
Meanwhile, BTC has declared a final dividend of P5.31 per share for the year ended 31 March 2021, plus an interim dividend of P3.13 per share which they declared during this reporting period, making the total dividend of the financial year
P8.44. Botswana Telecommunications Corporation is a converged telecommunications operator offering fixed- voice and data, mobile - voice and data and broadband services to consumers, enterprises and other licensed service providers.