MTC, Namibia’s largest mobile operator, posts $31 million profit in H1 2026

Mobile Telecommunications Limited (MTC), Namibia’s foremost and largest mobile operator, reported a rise in earnings for the six months ended March 31, 2026, as strong growth in prepaid, roaming, and enterprise services offset pressure in its contract segment.

The telecoms group posted revenue of NAD1.95 billion ($118.11 million), marking a 7.1% increase from N$1.82 billion ($110.21 million) the same period last year, while profit after tax climbed to NAD511.9 million ($30.99 million), up 1.6% year-on-year.

Profitability holds steady as data and enterprise demand drive growth

Profit before tax rose modestly by 1.2% to NAD730.8 million ($44.25 million), supported by growth in higher-margin services and lower finance costs. The effective tax rate eased to 30% from 31%, further supporting bottom-line performance. The company’s earnings per share edged up to NAD0.6826 ($0.04), while net asset value per share increased to NAD4.3296 ($0.26).

Growth was largely underpinned by a 9.1%  increase in prepaid revenue, supported by a 4.1% rise in subscribers, strong uptake of bundled offerings, and higher data consumption.

Roaming revenue surged 45.2%, driven by increased inbound data usage linked to IoT connectivity during upgrades in Namibia’s automotive sector.

Enterprise revenue emerged as a key growth pillar, rising 31.4% on the back of a 29% expansion in its customer base and growing demand for integrated connectivity solutions.

MTC’s total subscriber base increased to approximately 2.37 million, reflecting continued expansion across prepaid, postpaid, and enterprise segments.

Costs rise, margins under pressure

Despite topline growth, rising costs weighed on profitability. Direct costs increased by 7.7%, driven by higher transmission lease expenses and new spectrum-related license fees, while personnel costs jumped 18.6% due to headcount growth and salary adjustments.

General and administrative expenses rose 12.3%, reflecting higher security, software, and inflation-linked costs, while sales and marketing expenses increased in line with revenue growth. As a result, EBITDA margin declined to 47.4% from 49.4% a year earlier, although the company maintained strong operating profitability.

Management said it will continue to monitor macroeconomic conditions, including inflation, consumer spending trends, and geopolitical developments, as it positions the business for sustained growth and long-term value creation.

Dividend payout and shareholder returns

MTC declared an interim dividend of NAD358.35 million ($21.71 million), equivalent to NAD0.4778 ($0.02) per share, reinforcing its commitment to shareholder returns. The dividend will be paid on July 24, 2026, with a record date of July 3, 2026.

Strategic focus and outlook

MTC is the first and largest mobile telecommunications company in Namibia, with over two million active subscribers since 1994. Balanced sheet also expanded with total assets expanding by 6.76% from NAD4.52 billion ($273.47 million) to NAD4.82 billion ($291.95 million) while retained earnings for the period rose by 7.01% from NAD3.01 billion ($182.27 million) to NAD3.22 billion ($195.07 million).

Through its fintech arm, MTC Maris, the group is expanding services aimed at underbanked and unbanked populations, including new digital engagement channels such as mobile applications and messaging platforms. The company is also advancing digital platform monetization and strengthening its fibre infrastructure to support long-term growth. MTC plans to accelerate prepaid revenue growth, expand broadband adoption, and deepen its enterprise business through targeted investments and product optimization.