Investments to spur BTC’s business operations
By John Churu, Gaborone, Botswana
Botswana Stock Exchange listed telecommunication solutions provider, Botswana Telecommunication (BTC) is optimistic the company will do well this year.
Anthony Masunga, BTC Managing Director says the positive outlook is attributed to positive economic forecasts and significant investments in the network, IT enterprise systems, retail shops and working environment.
“We are optimistic that these investments will allow us to seize the opportunities that exist in the market, enhance customer experience and create value for our shareholders.
“The company has realigned its organisational structure to deliver improved efficiencies in support of our business strategy,” said Masunga reporting on the company’s annual financial results for the year ending March 2018.
He said the company’s strategic focus remains growth and transformation, anchored by cultural, commercial and technology transformation.
BTC offers fixed and mobile services - voice, data and broadband to individual consumers, enterprises and other licensed service providers.
Commenting on the year under review, Masunga said the overall economic environment for the year was subdued, which led to the reduction in ICT spend from enterprises and government entities, with most entities negotiating for lower prices on new and existing services.
“The slowdown in spending also impacted the consumer segments as households were faced with prioritizing their income on basic necessities,” said Masunga.
He also highlighted that competition in the telecommunications sector continued to intensify with the entry of new internet service providers leading to a downward pressure on prices, leading to a negative impact on BTC performance.
“The company recorded an eight percent decrease in profit after tax to P217m (FY17: P237m) on the back of a three percent decline in revenue to P1 567m (FY17: P1 615m), a 9 percent increase in administrative expenses to P440m (FY17:P402m) and a P10m increase in the tax charge from prior year.”
Meanwhile Masunga also highlighted that last year the business made P121m worth of investments in fixed broadband expansion and LTE/4G mobile broadband optimization to increase network coverage and enhance our value proposition.