Botswana Telecommunication Corporation Limited (BTCL) is expected to announce a 16 percent growth in revenue on a year-on-year for the year 2013 mainly as a result of significant growth in Mobile and Broadband revenues.
Past financial statements show that BTCL’s revenue for 2011/12 stood at P1 187 million while profit before tax was P237 million. For the financial year 2012/13, the Corporation is said to have hit a revenue mark of P1 375 million and profit before tax of P284 million.
Traditionally, BTCL’s sales growth was recorded in fixed line revenues which have since come under pressure both in the domestic market and worldwide, mainly as a result of the emergence of the mobile telephony.
BTCL Managing Director Paul Taylor said the corporation profit grew by 20 percent year on year resulting from savings in network costs primarily.
“We need to continually drive down our cost of providing service in order to maintain current prices to our customers and also be able offer price reductions in the future. The cost of communications services is coming down world-wide and we are aligning with international benchmarks,” said Taylor.
He also pointed out that the corporation is changing to a Fixed Mobile Converged organisation to better address the competitive environment adding that they went to market in three fairly distinct businesses, 3 brands, and multiple network and system platforms. “FMC offers us an opportunity to deliver services more efficiently.”
Asked on the innovative solutions that BTCL created to empower citizens to communicate, and access to data applications Taylor said BTCL has in the recent past deployed Nteletsa service to extend both data and voice communications to a significant number of un-serviced rural areas.
Taylor also spoke about the implemented WACCS and EASY connectivity to provide lower cost, higher capacity communications, and improved its quality of Broadband services by fundamentally re-engineering its broadband network.
“We have launched SMEGA mobile money services in partnership with First National Bank, launched WiFi services at selected locations across the country and will shortly be launching two new higher speed broadband Services the first operating at 10Mbit/s,” said Taylor.
BTCL MD revealed that BTCL has completed the process of handing over asserts to BOFINET adding that Phase 1 of the asset transfer has been accomplished. “There remains some administrative tidying up tasks to complete.”
Taylor is optimistic that the recent relocation of the Diamond Trading Company (DTC) functions from London to Gaborone provides many opportunities for his corporation. “We have recently completed the fibre reticulation of the DTC campus and are now actively discussing with stakeholders their communication requirements,” he said.
The MD also emphasised that because of the transfer of assets and customers to BOFINET a direct year on year comparison between the year ending March 2014 and the previous year is not possible. He is of the view that the 2013-2014 budget took into account the changes and said that the Corporation expect to achieve the budget which was promised to the Board of BTCL.
“We have reached the target financial performance for the past immediate financial year and BTCL delivered against target financial performance. Our revenues were up 16 percent and Net profit before tax was up 20 percenrt against previous year,” said Taylor.