Botswana Telecommunications Corporation – FY22 profit before tax up 8%

By Published On: July 12th, 2022Categories: Corporate announcement, Earnings
Botswana Telecommunications Corporation Limited 2022 Abridged Results

Botswana Telecommunications Corporation Limited (BTCL.bw) 2022 Abridged Report

COMMENTARY

Our Business

Botswana Telecommunications Corporation is a converged telecommunications operator offering fixed (voice and data), mobile (voice and data) and broadband services to consumers, enterprise and other licensed service providers.

Review of operations and results

  • Dividend per share thebe 5.04 thebe
  • Dividend yield at 13%
  • Earnings per share up by 2%
  • Profit before tax up by 8%
  • Revenue decline of 2% from prior year
  • EBITDA margin expansion by 170 basis points.
  • Cash Conversion at 34%

Performance Overview

The company’s operational performance remained resilient with EBITDA growth during the year reflecting the increased demand for our products due to the stability and reliability of our network infrastructure. We continued to invest in strategic growth areas and the result was within our forecast in the mobile data and broadband offerings. Our investments included upgrading the mobile network to 4.5G (LTE-A) coverage across the country, rolling out the fibre connectivity upgrades and renewing the VSAT platform, leading to connectivity anywhere in Botswana. Furthermore, the various technology platforms enable us to connect customers across multiple technologies, products and offerings, thus giving us capability to defend and increase our customer base. Some of our key customer segments are taking advantage of this benefit and are utilizing a full suite of our products. The reported revenue slightly declined by 2% to P1.392 billion for the year with the decrease in voice revenues being mainly offset by growth in the data business. EBITDA increased by 3% with margin expansion of 170 basis points due to tight cost management. The cash and cash equivalents at the end of the period of P520 million, are up 43%, driven by improved EBITDA and lower capital expenditure payments.

Domestic Economy

In the short to medium term, the economic growth outlook is subdued and we anticipate a tough operating environment on the back of rising local inflation and increasing international commodity prices.

Outlook

BTC’s purpose hinges on enabling Batswana to live connected, anchoring Botswana’s digital transformation and enabling economic growth. We continue to forge strategic partnerships with key stakeholders and believe that we can play an important role in the development of Botswana and in transforming the business landscape.

As a business, the company’s strategic focus for the next few years is to improve our customer experience through improved service offerings and seamless interaction with clients. We are embarking on the digitalization journey, cutting right across the business from operations and processes and leading to enhanced end user experience. We currently offer multiple digital touchpoints on the website, mobile application, USSD codes and the SMEGA financial services. Going forward we will be focused on offering converged touchpoints to allow customers to fully transact across the business.

We are optimistic that the refreshed strategy will leverage on our upgraded technology platforms and continue to provide returns. We are confident in our workforce, network capability and product portfolio; and are proud of the brand equity we have built as a local home grown brand.

CONTINUED………


Botswana Telecommunications Corporation Limited (BTCL.bw)

Share price: 79.00 Thebe (0.00 | 0.00% – 15/08/22)