BTCL Profit Descends 8%
Despite witnessing a decrease in mobile subscriber base, Botswana Telecommunications Corporation (BTC) Limited has maintained its market share in this category. The Corporation Managing Director Anthony Masunga told stakeholders on Thursday this week where BTC was announcing its audited financial statements for the year ended 31 March, 2018. The listed telecommunications company has been stable […]
Despite witnessing a decrease in mobile subscriber base, Botswana Telecommunications Corporation (BTC) Limited has maintained its market share in this category. The Corporation Managing Director Anthony Masunga told stakeholders on Thursday this week where BTC was announcing its audited financial statements for the year ended 31 March, 2018. The listed telecommunications company has been stable in terms of its market share.
In the fixed line space, Masunga said this is where the company has the most comfort as it continues to defend the market. Due to the increase of other forms of communications through mobile devices, Masunga said the voice section is the most affected as people resort to other new platforms of communications on their gadgets, hence negatively affecting revenue. Going forward the MD said the business will focus more on data volume.
Having been a parastatal for a prolonged period, Masunga said the company is undergoing transition to the appropriate corporate governance levels. To achieve this, Masunga said their transformation strategy will be pinned on three pillars being commercial transformation, technology transformation and cultural transformation. Key to this, he said will efficiency as other operators are also looking at efficiency the world over. BTC which listed on the Botswana Stock Exchange (BSE) in 2016 is slowly moving away from the wholesale segment according to Masunga. He said this is also because of the separation of assets between it and BOFINET, and therefore said it does not make sense to remain in this segment.
In response to technology trends, BTC says it has adopted modernized, faster and cheaper technologies which are aligned with customer demands during the year. The company has during the year moved customers to new technologies which are more efficient. The expectation is that efficiencies and usage will improve as BTC completes the migration phase and retire old technologies.
For the year ending 31 March, 2018 BTC registered revenue of P1.59 billion with profit after tax going down by 8 percent to P217 million from P237 million on the back of a 3 percent decline in revenue which was at P1, 567 million the prior year. BTC General Manager Finance Abel Bogatsu said with competition increasing, it comes with pressure on margins. Bogatsu said they are converging their billing platforms and continue to rationalize costs. The revenue decline is mainly attributed to pressure on mobile revenue while other revenue lines remained flat.
However, the company saw an increase in the data-centric products in line with market trends.The BTC board of directors led by Lorato Boakgomo-Ntakhwana has declared a dividend of 9.70 thebe per share, which follows a 3.73 thebe per share which was declared and paid for the interim results, taking a total annual dividend for the financial year to 13.43 thebe per share.
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