PARATUS Namibia Holdings Limited has reported a N$19 million profit for the 2023 financial year.
The results released over the weekend show that Paratus delivered revenue growth of 17% against a weak local economy due to high interest rates and inflation.
Commentary from the directors is that the double digit revenue growth is driven by the expansion of their fibre and LTE network across Namibia and the occupation of the new data centre.
Paratus will pay its shareholders a 10 cents per share final dividend for the fifth time in a row.
The company shows a healthy balance sheet, with total liabilities amounting to just a little over N$1 billion
As per the reviewed financial statements, the group has made consolidated revenue of N$428,2 million.
This is an an upward movement from N$351,7 million recorded in June last.
However, the company recorded a decline in net profit before taxation, which is N$33 million for this financial year compared to N$43 million recorded last year.
Management cited that the 24,7% drop was mainly caused by the increase in non-cash depreciation charges emanating from new infrastructure completed during the year, which included the data centre.
Commentary from the directors is that the group spent N$450 million on infrastructure, which, when combined with the N$130 million bond issued during September 2022, resulted in the additional finance cost of N18,4million.
The reviewed results also showed a big disparity between profit after tax and earnings before interest, taxation depreciation and amortisation, which stood at N$163 million.
Cash spent on investing activities was at N$265 million, but much cash flow is drained by the interest portion of the loans the group has raised.
Specifically, they disbursed N$29 million in loan interest over the course of the year.
The group, partly owned by Capricorn Group Limited, has an asset base of over N$1 billion in this current financial year as projected in the 2022 financial year.
