- But profit after tax up by 2% on last year
- Smega recorded “very encouraging” growth
- BTC’s cash and cash equivalents up by 43%
Revenue at BSE-listed telecommunications giant Botswana Telecommunications Corporation Limited (BTC) declined by 2 percent from P1.43 billion in 2021 to P1.39 in 2022 on the back of significantly reduced voice revenue that was partly offset by increased broadband revenue, The Botswana Gazette can reveal.
“Despite the topline reduction, we continued, however, to deliver a strong growth in profit after tax of 2 percent relative to the previous financial year, driven mostly by our cost reduction initiative leading to a 3 percent EBITDA increase,” says Managing Director Anthony Masunga in the company’s 2022 annual report released recently.
Masunga also notes that BTC’s cash and cash equivalents significantly increased by 43 percent from P363 million in the prior year to P520 million as at the end of March 2022.
Debt collection improved
“The increase was driven by a positive cash conversion ratio of 34 percent as well as favourable working capital resulting from implementation of debt collection measures during the year,” he says.
“This allowed us to continue to further expand our mobile data network and replace old copper connections with fibre in order to improve our customers’ quality of service.”
BTC saw the mobile phone market continuing to grow during the year with consumers owning several SIM cards from all the mobile network operators.
“This growth is driven mostly by mobile broadband demand as consumers are getting used to new ways of working apart from more traditional office-based work,” says the MD.
Masunga says the Smega, BTC Mobile Money Service, has also recorded “very encouraging” growth during the year.
“More services are constantly being added on to the service to augment the card, as well as to continue to bring financial services to various citizens, including the unbanked members of our communities,” Masunga said. “Smega is able to interact with traditional banking systems, which brings about more convenience to our customers.”
For her part, BTC Chairperson Lorato Boakgomo-Ntakhwana notes that the board has approved a new Strategy 2022- 2025 with a budget for the first year targeted at building on investments made during the previous planning period.
“Our focus going forward is to provide exceptional customer-focused digital solutions that will transform Botswana and selected Sub-Saharan markets,” she says.
“The 2022–2023 Financial Year will therefore be a transition period between the 2020–2023 and the new proposed 2022–2025 Strategy.”