“BTC Reports Stellar Half-Year Results: Profits Surge 57% as Digital Transformation Gains Momentum!”
Botswana Telecommunications Corporation (BTC), a leading converged telecommunications operator offering fixed, mobile, and broadband services, has released its unaudited interim financial results for the half-year ended 30 September 2024. These results showcase strong growth and highlight BTC’s dedication to driving innovation and value in Botswana’s telecommunications landscape.
Performance in Numbers: A Snapshot
• Revenue: BWP 722 million, reflecting a modest 1% year-on-year increase as BTC adapts to evolving consumer demands for mobility, data services, and mobile financial solutions.
• EBITDA Margin: 34.8%, an 8.5% increase, demonstrating operational efficiency and resource management excellence.
• Profit After Tax: A remarkable rise of 57%, climbing to BWP 112 million from BWP 71 million in the prior year.
• Earnings per Share: 10.65 thebe, reflecting solid returns for shareholders.
• Return on Capital Employed (ROCE): 5%, underscoring BTC’s efficient use of capital.
• Cost to Income Ratio: Improved to 81%, showcasing a focus on cost control.
Key Financial and Operational Highlights
BTC maintained resilience amid economic challenges, reducing costs by 20% while counterbalancing declines in fixed network and mobile voice revenues with growth in:
• Mobile Prepaid Data Services
• Mobile Financial Services (SMEGA)
• Data Centre Cloud Services
The strategic rollout of fibre has also been pivotal in enhancing connectivity, reducing operational costs, and mitigating service disruptions caused by copper cable theft.
Economic and Industry Context
The interim results were achieved in a challenging domestic economy, with Botswana facing slowed growth due to reduced global demand for diamonds. This has impacted government revenues and domestic business activity. Despite this, BTC has positioned itself as a key driver of economic resilience, leveraging its services to support digital and financial inclusion.
What’s Driving BTC’s Success?
BTC Acting CEO, Ms. Boitumelo Paya, attributes the company’s success to its disciplined strategy and commitment to innovation:
“Our results demonstrate BTC’s ability to adapt to changing consumer needs while delivering value to stakeholders. We are focused on enhancing operational efficiency, expanding our services, and building a sustainable future.”
BTC is advancing several initiatives:
• Expanding Digital Access: Rolling out high-speed broadband through mobile and fixed solutions to enhance nationwide connectivity.
• Strengthening SMEGA: Growing the mobile financial services ecosystem, especially in rural areas, to drive financial inclusion and serve the unbanked population.
• Sustainability in Operations: Embedding eco-friendly practices across the value chain to ensure long-term resilience.
Outlook for 2025 and Beyond
BTC remains committed to its vision of becoming Botswana’s leading digital solutions provider by FY2025. The company is focusing on network expansion, innovation in financial services, and affordability to ensure digital inclusion for all Batswana.
The Bigger Picture: Why It Matters
BTC’s transformative efforts are not just about connectivity—they are about empowering individuals, businesses, and communities. From enabling remote education to fostering financial independence through SMEGA, BTC is setting the stage for a digitally inclusive future.
