Revenue Growth and Strategic Investments Highlight Paratus Namibia’s Performance
Paratus Namibia Holdings Limited has released its reviewed consolidated financial results for the six months ending December 31, 2023, showcasing a significant revenue increase despite challenging economic conditions. The group reported a revenue of N$281.10 million, a notable rise from N$223.14 million in the same period the previous year. This represents a 26% growth in revenue, driven by several factors including the expansion of its fiber, SKY-Fi, and LTE networks across Namibia, capacity sales on the Equiano subsea cable, and the occupation of a new data center.
The performance is particularly commendable given the weak economic backdrop. Paratus Namibia, the operating entity, achieved recurring revenue growth of 24.7%, totaling N$249.8 million compared to N$200.3 million in 2022. Non-recurring revenue, which includes Local Area Network installations and the sale of telecommunication equipment, increased by 41.5% to N$25.9 million from N$18.3 million. Despite management’s focus on growing recurring revenue, non-recurring revenue also showed robust growth.
Strong Profitability and Operational Efficiency
The net profit before taxation for Paratus Namibia stood at N$32 million, up from N$22.2 million in 2022, marking a 44% growth. Earnings before interest, taxation, depreciation, and amortization (EBITDA) saw a 63% increase, recording N$121.3 million compared to N$74.4 million in the previous year. This increase in profitability is attributed to strong revenue growth and effective cost containment measures. However, the operating margin slightly decreased to 51% from 52%, influenced by additional depreciation charges from the data center and the newly acquired Equiano branch.
Capital Projects and Infrastructure Expansion
In terms of capital projects, Paratus Namibia invested N$75 million in infrastructure during the period, focusing primarily on capacity expansion and customer access within the existing network. This investment strategy has been reflected in the growth of recurring revenue. Additionally, N$17.3 million was jointly invested with Paratus Botswana to construct a fiber line linking the Equiano subsea cable in Swakopmund to Johannesburg, with completion expected by mid-March 2024 at a total estimated cost of USD2.55 million.
Dividend Declaration and Future Outlook
The company has declared an interim dividend of 10 cents per ordinary share, consistent with the previous year. The decision to maintain the dividend level aims to preserve cash flows for infrastructure deployment, which is expected to support future profit growth. The key dates for the dividend are as follows: the last date to trade cum dividend is April 19, 2024, the first day to trade ex dividend is April 22, 2024, the last date to register is April 26, 2024, and the payment date is May 17, 2024.
Conclusion
The financial results demonstrate Paratus Namibia’s resilience and strategic investment in infrastructure, positioning the company for continued growth in the telecommunications sector.