Staff Writer
Mobile Telecommunications Company (MTC) has reported strong financial results for the 2025 financial year, supported by favourable operating conditions and ongoing strategic investments.
Financial analyst Max Rix from Simonis Storm rated the stock a “measured buy,” pointing to its attractive valuation and strong cash flows, but also noting growing competitive pressure.
MTC’s total income rose to N$3.71 billion, an increase of 14 to 15% year-on-year. The prepaid segment performed well, with subscriber numbers rising by 4.3% and average revenue per user growing by 14.6%. This lifted mobile revenue at a time when prepaid markets in many emerging economies are slowing.
Operational performance also improved. EBITDA increased by 22.3%, with margins expanding from 45.9% to 49.1%. The company attributed this to the removal of the CRAN levy and tighter cost control.
Profit from operations rose by 33% to N$1.36 billion. Profit after tax increased by 32% to N$1.02 billion. Earnings per share went up from 103c to 136c, while return on equity remained steady at 31.6%.
MTC’s balance sheet remains strong, with low debt and solid liquidity. The company paid 96.30c per share in dividends for the 2025 financial year, followed by a final dividend of 62.28c. This produced a dividend yield of 10.5% based on the current share price of 915c. Analysts say MTC remains one of the most reliable dividend payers on the Namibian Stock Exchange.
Despite these results, MTC is operating in a market that is changing fast. Paratus is expanding its fibre network, enterprise services, and cloud capacity, strengthening its appeal to high-value customers. New technologies such as Starlink may also influence connectivity expectations for enterprise clients in mining, logistics, and remote areas.
To respond to these shifts, MTC is focusing on four priority growth areas: expanding fixed broadband, accelerating 5G deployment, growing enterprise solutions, and scaling the Maris mobile payments platform. Enterprise connectivity is already showing fast growth. Maris is still in the investment phase, and its long-term performance will depend on strong execution.
MTC’s valuation remains favourable. The company trades at 6.7 times trailing earnings per share and has a price-to-book ratio of 2.14, with a trailing dividend yield of 10.5%. Simonis Storm estimates a fair value of between 1100c and 1150c, based on stable earnings and continued growth momentum.
MTC’s 2025 results confirm its position as a profitable and resilient business in Namibia. While the company appears well-placed for future growth, analysts say investors should watch how competition and new technologies shape the operating environment. Simonis Storm has maintained a “measured buy” rating on the stock.
Caption
MTC operates in a rapidly changing market. Competitors, such as Paratus, are expanding their fibre infrastructure, and Starlink may shift connectivity expectations for enterprise clients.
- Photo: Contributed
