Chamwe Kaira
Mobile Telecommunications Limited (MTC) is showing signs of commercial recovery, supported by rising revenue, growing subscriber numbers, and solid performance in the enterprise segment, according to Simonis Storm Securities.
In its interim results, MTC reported a strong first-half performance for 2025, driven by improved product delivery, subscriber growth, and revenue uplift across its portfolio.
The company posted a profit of N$503 million, up from N$362 million in the same period in 2024.
Revenue increased by 15.8%, from N$1.57 billion to N$1.82 billion, driven by higher demand for high-speed data and value-added services, mainly from prepaid users and enterprise clients.
Simonis Storm said MTC has managed to defend and expand its margins while absorbing regulatory costs and growing new platforms and channels.
“The rollout of MTC Maris and broader investment into digital infrastructure are not merely operational upgrades; they signal a structural pivot toward platform economics, with the potential to shift revenue composition over time. The telecom-fintech convergence theme is beginning to show in the numbers, albeit still at an early stage,” the report stated.
The report acknowledged risks, including rising credit loss provisions and regulatory cost pressures.
“But those risks are being managed within a framework of profitable growth, not defensive retrenchment. A near 40% increase in earnings and a 45% uplift in the dividend are not accidental; they reflect sound execution and balance sheet confidence.”
MTC said changes in inventories of finished goods increased by N$35.3 million, or 17.2%, aligned with revenue growth driven by higher demand for handsets, accessories, and network usage.
General and administrative expenses rose by 4.8%, reflecting inflationary trends. Personnel costs went up by 12.4% due to inflation-linked salary adjustments and an increase in headcount.
The company noted an increase of N$9.8 million in expected credit losses, linked to growing affordability pressures among customers.
In response, MTC implemented targeted credit control measures, including improved customer engagement and tighter credit assessments for new postpaid accounts. These actions aim to improve debt recovery and reduce future defaults.
MTC said it achieved a 38.3% increase in net profit for the first half of the year. “This is evident from the 38.3% increase in net profit and these results reflect successful execution of the Group’s strategic objectives and indicate our ability to deliver sustainable value to the shareholders despite a challenging economic environment. Group further benefitted from the reduction in the corporate tax rate,” the company said.
